Oakville, ON, Oct. 22, 2014 /CNW/ - Canoe Mining Ventures Corp. (TSXV: CLV) ("Canoe") announces that it has closed the first tranche of its previously announced non-brokered private placement (the "Private Placement"). Canoe issued 886,667 units at a price of $0.15 per unit for total gross proceeds of $133,000, with each unit consisting of one Canoe common share and one-half of one common share purchase warrant. Each whole common share purchase warrant entitles the holder to acquire one common share of Canoe at a price of $0.25 for a period of 24 months until October 22, 2016.
All securities issued under the first tranche of the Private Placement are subject to a 4 month and 1 day statutory hold period until February 23, 2015. Canoe intends to use the net proceeds from the first tranche of the Private Placement for general working capital purposes and for project acquisitions.
Certain directors, officers and other insiders of Canoe participated in the first tranche of the Private Placement constituting related party transactions pursuant to TSX Venture Exchange ("TSXV") Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Canoe relied on Section 5.5(a) of MI 61-101 for an exemption from the formal valuation requirement and Section 5.7(1)(a) of MI 61-101 for an exemption from the minority shareholder approval requirement of MI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders will exceed 25% of Canoe's market capitalization.
Canoe also announces it has extended the closing date of the Private Placement to November 30, 2014.
In addition, Canoe has received TSXV approval of the debt settlement agreement announced on October 21, 2014, and has issued 1,250,000 common shares to Alto Ventures at a deemed price of $250,000. All securities issued are subject to a 4 month and 1 day statutory hold period until February 22, 2015.
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 news release.
On Behalf of the Board of Directors of Canoe Mining,
Duane Parnham, President and CEO
SOURCE: Canoe Mining Ventures Corp.
For further information: Duane Parnham, President and CEO, Director, Canoe Mining Ventures Corp, Tel: 1.905.844.7612 ext.236; Luke Vigeant, Manager, Investor Relations, Canoe Mining Ventures Corp., Tel: 1.905.844.7612 ext.237, Email: [email protected]