CANEX Increases Equity Financing

Rhea-AI Summary

CANEX Metals has increased its non-brokered private placement due to strong shareholder demand. The company will now offer up to 3,000,000 common shares at $0.045 each and up to 5,250,000 flow-through common shares at $0.06 each, for gross proceeds of up to $450,000.

Proceeds from the flow-through shares will be used for exploration at the Louise Property before December 2025, qualifying as 'critical mineral flow through mining expenditures' under the Income Tax Act. Non-flow through proceeds will advance the Gold Range Project and provide working capital.

The private placement is open to accredited investors, with a four-month plus one day hold period on securities issued. The financing is subject to TSX Venture Exchange and regulatory approval. No commissions will be paid to agents on this financing.

Positive

• Increased private placement due to strong shareholder demand
• Potential to raise up to $450,000 in gross proceeds
• Funds allocated for exploration at Louise Property and Gold Range Project
• Qualifies for tax benefits as 'critical mineral flow through mining expenditures'

Negative

• Potential dilution of existing shareholders due to new share issuance

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

CALGARY, AB / ACCESSWIRE / October 21, 2024 / CANEX Metals Inc. ("CANEX" or the "Company") is pleased to announce that due to strong shareholder demand the Company has increased its previously announced non-brokered private placement and will now offer up to 3,000,000 common shares ("Common Shares") and up to 5,250,000 flow-through common shares ("FT Shares") for gross proceeds of up to $450,000. Common Shares will be offered at $0.045 and FT Shares will be offered at $0.06.

Proceeds from the FT Shares will be used before December 2025 for general exploration expenditures at the Louise Property which will constitute Canadian exploration expenses within the meaning of subsection 66.1(6) of the Income Tax Act (Canada) (the "Tax Act"), that will qualify as "critical mineral flow through mining expenditures" within the meaning of the Tax Act. Proceeds from non-flow through Common Shares will be used to advance the Company's Gold Range Project and for general working capital.

The shares will be offered on a non-brokered basis by way of private placement to accredited investors and any securities issued will be subject to a hold period of four months plus one day from the date of closing. This financing is subject to TSX Venture Exchange and regulatory approval. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in Sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the subject matter of the Private Placement does not exceed 25% of the market capitalization of the Company as calculated in accordance with MI 61-101. No commissions will be paid to Agents on the financing.

About CANEX Metals

CANEX Metals (TSX.V:CANX) is a Canadian junior exploration company focused on advancing it's 100% owned Gold Range Project in Northern Arizona. With several near surface bulk tonnage gold discoveries made to date across a 4 km gold mineralized trend, the Gold Range Project is a compelling early-stage opportunity for investors. CANEX is also advancing the Louise Copper-Gold Porphyry deposit in British Columbia. Louise contains a large historic copper-gold resource that has seen very little deep or lateral exploration, offering investors copper and gold discovery potential. CANEX is led by an experienced management team which has made three notable porphyry and bulk tonnage discoveries in North America and is sponsored by Altius Minerals (TSX: ALS), a large shareholder of the Company.

Dr. Shane Ebert P.Geo., is the Qualified Person for CANEX Metals and has approved the technical disclosure contained in this news release.

"Shane Ebert"

Shane Ebert
President/Director

For Further Information Contact:
Shane Ebert at 1.250.964.2699 or
Jean Pierre Jutras at 1.403.233.2636
Web: http://www.canexmetals.ca

Neither the 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.

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans", "anticipates" and similar expressions, are forward-looking information that represents management of CANEX Metals Inc. internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of CANEX. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause CANEX's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in CANEX's filings with the Canadian securities authorities. Accordingly, holders of CANEX shares and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted. CANEX disclaims any responsibility to update these forward-looking statements.

SOURCE: CANEX Metals Inc.

View the original press release on accesswire.com

FAQ

What is the new size of CANEX Metals' (NOMNF) private placement offering?

CANEX Metals has increased its private placement offering to up to 3,000,000 common shares and up to 5,250,000 flow-through common shares, for gross proceeds of up to $450,000.

What are the prices for CANEX Metals' (NOMNF) common and flow-through shares in the October 2024 offering?

In the October 2024 offering, CANEX Metals is offering common shares at $0.045 each and flow-through shares at $0.06 each.

How will CANEX Metals (NOMNF) use the proceeds from its increased equity financing?

Proceeds from flow-through shares will be used for exploration at the Louise Property, while proceeds from non-flow through shares will advance the Gold Range Project and provide working capital.

When does CANEX Metals (NOMNF) plan to use the flow-through share proceeds for exploration?

CANEX Metals plans to use the proceeds from flow-through shares for exploration at the Louise Property before December 2025.