Callinex upsizes financing target to $8.2 million
Callinex Mines Inc. [CNX-TSXV, CLLXF-OTCQX: CLLXF] said it is increasing the size of a previously announced private placement offering that is now expected to generate gross proceeds of $8.2 million. That’s up from the previous $7 million target.
Callinex is advancing a portfolio of base and precious metal deposits located in established mining districts in Canadian mining jurisdictions. Its key assets, include the Nash Creek and Superjack projects in New Brunswick and the Pine Bay project in Manitoba. Its portfolio also includes a 100% interest in the Point Leamington deposit in Newfoundland, which is located in a rich VMS and gold district.
Callinex said the private placement offering will consist of the following combination:
- Units priced at $3.15 per unit. Each unit will consist of one common share and one half of one common share purchase warrant.
- Flow-through units to be sold to charitable purchasers at $5.67 per unit. Each charity flow-through unit will consist of one common share that will qualify as a flow-through share under the Income Tax Act (Canada) that will be issued as part of a charity arrangement and one half of one warrant.
Each warrant will entitle the holder to purchase one common share at an exercise price of $4.05 per warrant share at any time up to 24 months after closing. However, the expiry date could be accelerated if the shares trade above $7.87 for a period that is outlined in the press release.
The agents will have an option to offer for sale up to an additional15% of the number of units and charity flow-through units sold in the offering. That option is exercisable at any time up to 48 hours before the closing date of the offering. Closing is scheduled to occur on March 6, 2023.
Callinex said net proceeds from the sale of the units will be used for the company’s continuing exploration drilling program, working capital requirements and other corporate purposes. Proceeds from the sale of the charity flow-through units will be used for exploration expenses at the company’s Pine Bay project.
On February 15, 2023 Callinex shares eased 13.6% or 53 cents to $3.35 in light trading volume. The shares are currently trading in a 52-week range of $3.95 and $1.47.
Callinex recently appointed former HudBay Minerals Inc. [HBM-TSX, NYSE] CEO Peter Jones to its technical team. The company said Jones will assist the company in advancing the Pine Bay and other Callinex projects through the next stage of development.
Jones led the development and construction of several mines in the Flin Flon Greenstone Belt, including two of the largest, the 777 mine as well as the discovery and initial development of the Lalor mine.