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VANCOUVER, Sept. 10, 2019 /CNW/ - Callinex Mines Inc. (the "Company" or "Callinex") (TSXV: CNX) (OTC: CLLXF) is pleased to announce that it intends to complete a non-brokered private placement (the "Offering") of up to 2,000,000 units (a "Unit") at a price of $0.50 per Unit for gross proceeds of up to $1,000,000.
Each Unit will consist of one flow-through common share and one-half of one non-flow-through share purchase warrant (a "Warrant"), with each whole Warrant entitling the holder to purchase one additional share at a price of $1.00 per share for a period of two years from the date of issue.
The proceeds of the Offering will be used to conduct exploration activities on its exploration portfolio in the Flin Flon and Bathurst mining districts.
Callinex anticipates that insiders will subscribe for a total of 240,000 Units for total proceeds of $120,000. The issuance of Units to insiders is considered a related party transaction subject to Multilateral Instrument 61-101. Callinex intends to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that the participation in the private placement by the insiders will not exceed 25% of the fair market value of the Company's market capitalization.
All securities issued under the Offering will be subject to a four-month hold period from the date of completion.
Callinex also announces that it has granted a total of 565,000 stock options to its directors, officers, employees and consultants. The stock options have a five year term, are exercisable at $0.50 per share and subject to certain vesting requirements.
This press release is not an offer of securities for sale in the United States. The securities described in this press release have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act of 1933, as amended) absent registration or an exemption from registration. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction where such offer, solicitation, or sale would be unlawful.
About Callinex Mines Inc.
Callinex Mines Inc. (TSXV: CNX) (OTC: CLLXF) is advancing its portfolio of zinc rich deposits located in established Canadian mining jurisdictions. The portfolio is highlighted by its Nash Creek and Superjack deposits in the Bathurst Mining District of New Brunswick. A 2018 PEA outlined a mine plan that generates a strong economic return with a pre-tax IRR of a 34.1% (25.2% post-tax) and NPV8% of $230 million ($128 million post-tax). The projects have significant exploration upside over a district-scale land package that encompasses several high-grade mineral occurrences along a 20 km trend. Click here to view a video overview of the Nash Creek Project.
Neither the 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.
Some statements in this news release contain forward-looking information. These statements include, but are not limited to, statements with respect to future expenditures. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Except as required under applicable securities laws, Callinex does not assume the obligation to update any forward-looking statement.
SOURCE Callinex Mines Inc.
For further information: Callinex Mines Inc., Max Porterfield, President and Chief Executive Officer, Phone: (604) 605-0885, E-mail: [email protected]