Abcana Capital Inc. Closes Acquisition of Casa Minerals Inc.
Vancouver, British Columbia (FSCwire) - Abcana Capital Inc. (TSXV: ABQ.H) (the “Company”) is pleased to announce that it has completed its acquisition of Casa Minerals Inc. (“Casa”) pursuant to the terms of an amended and restated amalgamation agreement dated September 13, 2017 (the “Transaction”). As a result of closing of the Transaction, the Company will be listed as a Tier 2 mining issuer on the TSX Venture Exchange, effective on opening of trading on December 7, 2017, under the symbol “CASA”.
Acquisition of Casa and Private Placement Financing
Under the terms of the Amended and Restated Amalgamation Agreement, the Company acquired all of the issued and outstanding shares of Casa and, in consideration of which, the Company issued an aggregate of 21,487,301 common shares to the shareholders of Casa.
Effective today, the Company closed its private placement financing by issuing 1,020,000 Flow-Throw Units of the Company at a price of $0.10 per Flow-Through Unit for gross proceeds of $102,000 and 1,200,000 Units at a price of $0.0675 per Unit for gross proceeds of $81,000. Each Flow-Through Unit consists of one flow-through Common Share and one-half of one share purchase warrant, and each Unit consists of one Common Share and one share purchase warrant (the “Warrants”). Each whole Warrant entitles the holder to purchase one additional common share of the Company at any time on or before 5:00 p.m. (Vancouver time) two years from the date of issuance of the warrants at a price of $0.10 per common share.
The securities will be subject to a hold period expiring on March 30, 2018 pursuant to applicable Canadian securities laws and the rules of the TSX Venture Exchange. No finder’s fee was payable under the private placement. The proceeds of the private placement will be used for exploration work on the Pitman Property and general working capital purposes.
As part of the Transaction, the Company changed its name to “Casa Minerals Inc.”.
Directors, Officers and Stock Options
As a result of the closing of the Transaction, Farshad Shirvani became the Chief Executive Officer, President and a director of the Company, Anke Woodworth became the Chief Financial Officer and a director of the Company and Robert Hall and Erik Ostensoe will serve as directors of the Company.
In conjunction with closing the Transaction, the Company granted 1,800,000 stock options to the officers, directors and consultants of the Company. The options will be exercisable at a price of $0.09 per share for a period of five years from the date of the final exchange bulletin.
Escrow Shares
A total of 9,840,666 shares will be subject to the escrow requirements set forth in TSX Venture Exchange Policy 5.4 – Escrow, Vendor Consideration and Resale Restrictions whereby 10% of the escrowed shares will be released on the initial listing date and 15% of the escrowed shares will be released each six month period thereafter.
About Casa Minerals Inc.
The Company is engaged in the acquisition, exploration and development of its mineral property located in Canada. The Company owns a one hundred percent (100%) interest in the Pitman Property and has an option to acquire a seventy-five percent (75%) interest in the Arsenault Property.
The Pitman Property is comprised of five mineral claims covering approximately 5,423.17 hectares and is located 20 kilometres from Terrace, British Columbia. The mineral claims of the Pitman Property comprise five non-contiguous mineral tenures of historical prospecting, including the Pitman copper-molybdenum+-silver prospect and the WoMo and Paddy Mac gold and base metal prospects as well as the Keaper gold-silver-copper propspect. Casa’s exploration program for the Pitman Property will be primarily focused on the exploration for gold, copper, silver and molybdenum.
The Arsenault Property is comprised of three mineral claims covering approximately 2,751.07 hectares and is located in the Atlin Mining Division, British Columbia. The focus on the Arsenault Property will be to further define the volcanogenic massive sulphide exploration target located within the Arsenault Property.
For more information, please contact:
Casa Minerals Inc.
Farshad Shirvani, President & CEO
Phone: (604) 689-9523
Email: contact@casaminerals.com
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to the Company’s limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view this press release as a PDF file, click onto the following link:
public://news_release_pdf/casaminerals12052017.pdf
Source: Casa Minerals Inc. (TSX Venture:CASAM)
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