TORONTO, July 24, 2020 (GLOBE NEWSWIRE) — CR Capital Corp. (TSX-V / CIT) (“CR Capital” or the “Company“) is pleased to announce that it has closed the second and final tranche (the “Second Tranche”) of its previously announced non-brokered private placement (see news releases dated July 2, 2020, July 3, 2020 and July 20, 2020) for aggregate gross proceeds of C$185,200 of (i) 1,500,000 flow-through units of the Company (“FT Units”) at a price of C$0.10 per FT Unit and (ii) 440,000 hard-dollar units of the Company (“HD Units”) at a price of C$0.08 per HD Unit. Aggregate gross proceeds from the first tranche (the “First Tranche” and together with the Second Tranche, the “Offering”), which closed on July 20, 2020, and the Second Tranche are C$1,000,000 from the issuance of 5,000,000 FT Units and 6,250,000 HD Units (inclusive of the Company’s over-allotment option for an additional 3,000,000 FT Units).
Each FT Unit consists of one (1) common share of the Company that qualifies as a “flow-through common share” (a “FT Share”), and one-half of one (0.5) common share purchase warrant (each whole warrant, a “FT Warrant”), with each FT Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of C$0.125 for a period of eighteen (18) months following the closing of the Offering. Each HD Unit consists of one (1) common share of the Company and one (1) common share purchase warrant (each a “Warrant”), with each Warrant entitling the holder thereof to acquire one (1) additional common share of the Company at a price of C$0.10 for a period of eighteen (18) months following the closing of the Offering.
For their assistance with the Offering, eligible finders were paid C$11,760 in the First Tranche and C$1,500 in the Second Tranche for aggregate cash compensation of C$13,260.
The FT Units, HD Units and underlying securities are subject to a customary four months and a day hold period. The FT Units, HD Units and underlying 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 applicable state securities laws and may not be offered or sold in the United States or to U.S. Persons (as defined in the U.S. Securities Act) without registration, or exemption from registration, under such laws.
The proceeds from the sale of the HD Units will be used for exploration and general working capital purposes. The proceeds from the issuance of the FT Units will be used for “Canadian exploration expenses” and will qualify as “flow-through mining expenditures” (the “Qualifying Expenditures“), as defined in subsection 127(9) of the Income Tax Act (Canada). The Company intends to renounce the Qualifying Expenditures to subscribers of FT Units for the fiscal year ended December 31, 2020.
The Offering is subject to final acceptance of the TSX Venture Exchange.
For further information, please contact:
Mr. Brian Howlett, CPA, CMA
President & CEO
CR Capital Corp.