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(In Canadian Dollars unless otherwise stated)
TORONTO, June 14, 2021 (GLOBE NEWSWIRE) -- Cartier Iron Corporation (CSE:CFE) (“Cartier Iron” or the “Company”) is pleased to announce that it has entered into an agreement with Cormark Securities Inc. (“Cormark”) pursuant to which Cormark has agreed to act as an agent in connection with a fully marketed private placement offering of up to 11,111,200 units of the Company (the “Units”) at a price of $0.09 per Unit for gross proceeds of up to $1,000,008; and up to 25,000,000 flow-through units of the Company (the “Flow-Through Units”, collectively with the Units, the “Offered Units”) at a price of $0.12 per Flow-Through Unit for gross proceeds of up to $3,000,000 (the “Offering”).
Each Unit will consist of one common share of the Company (a “Common Share”) and one Common Share purchase warrant (a “Warrant”). Each Flow-Through Unit will consist of one Common Share that qualifies as a “flow-through share” for the purposes of the Income Tax (Canada) (a “Flow-Through Share”) and one Warrant. Each Warrant will entitle the holder to acquire one Common Share of the Company at an exercise price of $0.14 for a period of 36 months following the closing of the Offering.
The Company has granted Cormark an option, exercisable in whole or in part, in the sole discretion of Cormark, for a period of 30 days from and including the closing date of the Offering, to purchase additional Offered Units, in an aggregate amount not to exceed 15% of the Offered Units sold pursuant to the Offering, on the same terms and at the same price as the Offered Units sold under the Offering.
Additionally, the Company is pleased to welcome a number of well-known mining entrepreneurs and executives as new shareholders, a list which includes Peter Marrone, the founder and Executive Chairman of Yamana Gold Inc., who has known Dr. Bill Pearson, P. Geo., Chief Technical Advisor for Cartier, since 2006. Mr. Marrone stated, “Bill was instrumental in initially conveying the geological potential of the Jacobina complex which we purchased in 2006. He demonstrated his abilities as a conceptual and structural geologist able to find large geologic structures with high quality resources potential. It comforts me that he is applying these skills and experience to Cartier.” Production at the Jacobina complex has more than doubled from 75,000 ounces of gold in 2014 to more than 177,000 ounces in 2020 with a plan to now increase production to 230,000 ounces. As importantly, the Jacobina complex has demonstrated its resources potential with proven and probable reserves supporting a mine life of at least another fifteen years which adds to the decades of previous production.
The net proceeds from the sale of the Units will be used for exploration expenditures and for working capital and general corporate purposes.
The proceeds of the sale of the Flow-Through Units will be used on exploration expenses as permitted under the Income Tax Act (Canada) to qualify as “Canadian exploration expenses”.
The Offering is scheduled to close on or about July 5, 2021 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Canadian Securities Exchange.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to or for the account or benefit of a U.S. person (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Cartier Iron Corporation
Cartier Iron is an exploration and development Company focused on discovering and developing significant iron ore resources in Quebec, and a potentially significant gold property in the province of Newfoundland and Labrador. The Company's iron ore projects include the Gagnon Holdings in the southern Labrador Trough region of east-central Quebec. The Big Easy gold property is located in the Burin Peninsula epithermal gold belt in the Avalon Zone of eastern Newfoundland.
Please visit Cartier Iron's website at www.cartieriron.com.
For further information please contact:
|Thomas G. Larsen||Jorge Estepa|
|Chief Executive Officer||Vice-President|
|(416) 360-8006||(416) 360-8006|
The CSE has not reviewed nor accepts responsibility for the adequacy or accuracy of this release. Statements in this release that are not historical facts are “forward-looking statements” and readers are cautioned that any such statements are not guarantees of future performance, and that actual developments or results, may vary materially from those in these “forward-looking statements”.
You can view the Next News Releases item: June 17, 2021, Cartier Iron Announces Upsizing of Previously Announced Marketed Private Placement of Units & Flow-Through Units
You can view the Previous News Releases item: June 8, 2021, Cartier Iron Diamond Drilling Intersects 0.62 g Au/t and 16.12 g Ag/t over 13.0m in Low Sulphidation Epithermal Au-Ag System at the Big Easy Gold Project, Newfoundland
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