Adventus Mining Corporation (TSX-V: ADZN) (OTCQX: ADVZF) is pleased to announce that it has entered into an agreement with 2176423 Ontario Ltd., a private company controlled by Eric Sprott, to sell 17,336,339 common shares of Canstar Resources Inc. (TSXV: ROX) (OTCQB: CSRNF) at a price of $0.375 per Share for gross proceeds to Adventus in the amount of $6,501,127.12.
Christian Kargl-Simard, President and CEO of Adventus commented, “We are excited at the ongoing momentum and success Canstar is having in Newfoundland, Canada, but must continue to focus on advancing and de-risking our core copper-gold business in Ecuador. We are pleased to have found an investor as renowned as Eric Sprott to purchase our Canstar stake with a longer-term vision for the business. As this ownership stake was non-core, the funds will go towards incremental exploration and development expenditures in Ecuador as well as general working capital and corporate purposes.”
The Sale Transaction is scheduled to close in two tranches: the first tranche of 10,401,802 Shares is anticipated to close on or about July 15, 2021 for proceeds of $3,900,675.75 and the second tranche of 6,934,537 Shares is anticipated to close on or about August 17, 2021 for proceeds of $2,600,451.37 following release from escrow, subject to customary closing conditions. All currencies referenced in this news release are in Canadian dollars.
Early Warning Disclosure
Upon closing of the Sale Transaction, Adventus will no longer hold any common shares in Canstar.
Adventus will file an early warning report under National Instrument 62-103 in connection with the closing of the Sale Transaction. As Adventus will have decreased its security holdings in Canstar below 10%, following the foregoing early warning report filing, it will no longer be required to report under the early warning requirements of National Instrument 62-104 – Take-Over Bids and Issuer Bids with respect to Canstar, unless its security holdings in Canstar increases to 10% or more in the future.
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We acknowledge the [financial] support of the Government of Canada.