Casa Minerals Announces Private Placement

Rhea-AI Summary

Casa Minerals Inc. (CASXF) announced a non-brokered private placement aiming to raise up to $750,000 by offering 15 million units at $0.05 each. Units include a common share and a warrant, with the latter exercisable at $0.10 for two years. An acceleration clause is included if shares exceed $0.17 for 7 days. Proceeds will fund exploration in Arizona and BC, and for general purposes. Securities are subject to a 4-month hold period and a potential 7% Finder's Fee with warrants. Approval from the TSX Venture Exchange is pending, and the securities won't be registered under the 1933 Act in the US.

Positive

• The private placement could raise up to $750,000 for exploration and development activities, which may enhance the company's project portfolio.
• The inclusion of warrants in the units may incentivize investment by offering potential additional value to investors.
• An acceleration clause is included, which could expedite funding if the company's share price performs well.
• The proceeds are intended for the development of the company's projects, which could lead to increased value if successful.

Negative

• The securities are subject to a 4-month hold period, which could limit liquidity for investors.
• The Finder's Fee and additional warrants could dilute existing shareholders' value.
• The offering is not registered under the 1933 Act, indicating that it is not available to US investors and limits the potential investment pool.

Vancouver, British Columbia--(Newsfile Corp. - April 12, 2024) - Casa Minerals Inc. (TSXV: CASA) (OTC Pink: CASXF) (FSE: 0CM) (the "Company" or "Casa"), is pleased to announce a non-brokered private placement (the "Offering") of up to 15,000,000 units at a price of $0.05 per unit for gross proceeds of up to $750,000.

Each unit will consist of one common share in the capital of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each warrant (the "Warrant") will entitle the holder to acquire one Common Share for a period of two years from the Closing Date at a price of $0.10. The warrants will be subject to an acceleration clause whereby if the Common shares of the Company, traded on the TSX-V, trade at a volume weighted average price exceeding $0.17 per Common share for a period of 7 consecutive trading days. At that time the Issuer may, at its discretion, deliver a notice (the "Notice") to the Warrant holders notifying such Warrant holders that they must exercise their Warrants within thirty (30) days from the date of such Notice.

Net proceeds from the Offering will be used for exploration and development activities on the Company's projects in Arizona, USA, and BC, Canada, and for general working and corporate purposes.

All Common Shares and Warrants comprising the Units, will be subject to a 4-month hold period from the date of issuance, during which any resale or other transfer will be restricted in accordance with applicable securities laws.

A Finder's Fee of 7% in cash or Shares is payable to eligible finders on all or a portion of the Offering. The "Finder" will also receive "Finder's warrants" (the Finders Warrants) entitling it to purchase up to 7% of the shares issued to the purchaser introduced by the Finder under the Offering exercisable at the issue price of $0.10 for a period of 24 months from the Closing Date.

The completion of the private placement remains subject to approval of the TSX Venture Exchange.

None of the securities issued in the offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

About Casa Minerals Inc.

The Company is engaged in the acquisition, exploration and development of mineral properties located in Canada and the USA. Casa owns ninety percent (90%) interest in the Congress gold mine (Arizona, USA). Additionally, the Company owns a one hundred percent (100%) interest in the polymetallic Pitman and Keaper properties (BC, Canada) and has an option to acquire a seventy-five percent (75%) interest in the Arsenault VMS Property (BC, Canada).

On Behalf of Board of Directors
Farshad Shirvani, M.Sc. Geology
President and CEO

For more information, please contact:
Casa Minerals Inc.
Farshad Shirvani, President & CEO
Phone: (604) 678-9587
Email: contact@casaminerals.com
https://www.casaminerals.com

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Certain of the statements made and information contained herein may constitute "forward-looking information." In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/205235

FAQ

What is the purpose of Casa Minerals' private placement?

Casa Minerals Inc. (CASXF) aims to raise up to $750,000 through a private placement for exploration and development activities on its projects in Arizona, USA, and BC, Canada, as well as for general working and corporate purposes.

How many units is CASXF offering in its private placement?

Casa Minerals Inc. (CASXF) is offering up to 15,000,000 units at a price of $0.05 per unit in its non-brokered private placement.

What does each unit offered by Casa Minerals include?

Each unit offered by Casa Minerals Inc. (CASXF) in the private placement consists of one common share and one warrant, which entitles the holder to acquire another common share at $0.10 within two years from the closing date.

Are there any incentives for early exercise of warrants in CASXF's offering?

Yes, Casa Minerals Inc. (CASXF) has included an acceleration clause in the warrants, which allows the company to expedite the exercise of the warrants if its common shares trade above $0.17 for seven consecutive trading days.

What are the terms of the Finder's Fee in CASXF's private placement?

Eligible finders in Casa Minerals Inc.'s (CASXF) private placement may receive a Finder's Fee of 7% in cash or shares, along with Finder's warrants exercisable at $0.10 for 24 months from the closing date, for up to 7% of the shares issued to the introduced purchaser.