Callinex Mines Inc. (TSX-V:CNX) (OTCQX:CLLXF) is pleased to announce that it has closed its previously announced $5.0 million non-brokered private placement financing with Sprott Private Wealth LP and one of its affiliates. The net proceeds of the Financing will be used to advance the Company’s new VMS discovery at its Pine Bay Project and for general working capital purposes.
Max Porterfield, President and CEO, stated, “We are pleased to have support from Sprott and its client base. The Company’s cash position is approximately $8.5 million after net proceeds from this financing. We are well funded to proceed with our current 10,000m follow-up drilling campaign which is budgeted for $2.0 million.”
The Financing consisted of 8,050,000 non-flow through units and 1,820,000 flow through shares for aggregate gross proceeds of $5.0 million. Each non-flow through Unit consists of one (1) non-flow through common share and one-half of one share purchase warrant. Each Warrant entitles the holder to acquire one non-flow through common share at a price of $0.75 for a period of three years from the date of issue. The Company will have the right to accelerate the expiry date of the Warrants if, at any time, the volume weighted average price exceeds $1.00 for 15 consecutive days. In the event of acceleration, the expiry date will be accelerated to a date that is 15 trading days after the Company issues a news release announcing that it has elected to exercise this acceleration right.
The securities are subject to a hold period expiring March 23, 2017. In connection with the Placement, the Company paid a 6% commission to Sprott on the total gross proceeds of the financing.
About Callinex Mines Inc.
Callinex Mines Inc. is focused on discovering and developing zinc and copper rich mines within prolific Canadian VMS mining jurisdictions. The Company is actively exploring its Pine Bay Project, located in the Flin Flon mining district of Manitoba, which hosts significant historic VMS deposits that are within close proximity to a processing facility. The larger project portfolio hosts three significant zinc rich mineral resources including the Point Leamington, Nash Creek and Superjack Projects located in Eastern Canada.
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