Mr. Rob Bruggeman reports
CANSTAR CLOSES FIRST TRANCHE OF PRIVATE PLACEMENT AND APPOINTS NEW CEO & DIRECTOR
Canstar Resources Inc. has appointed Rob Bruggeman as director, president and chief executive officer of the company, effective immediately. The company's board of directors is now composed of David Palmer, Sam Leung, Patrick Reid, Dennis Peterson and Mr. Bruggeman. The company is also pleased to announce that it has closed the first tranche of the non-brokered private placement for gross proceeds of up to $2.0-million, as announced on Sept. 2, 2020.
New CEO and director
Mr. Bruggeman has worked in senior management and consulting roles with mining companies for the past eight years, and has invested extensively in the mining sector. Currently, he is chairman of the board of Abraplata Resource Corp., a TSX Venture Exchange-listed company focused on silver-gold exploration in Argentina. Prior to joining the mining sector, Mr. Bruggeman spent more than 10 years, working in equity research and institutional equity sales and trading roles at several brokerage firms, including five years with TD Securities as vice-president, trading strategy and research. Mr. Bruggeman is a licensed professional engineer (Ontario) and a CFA charterholder.
Mr. Bruggeman commented: "Canstar has an excellent platform for mineral exploration in Newfoundland. I look forward to working with the Canstar team, as well as the technical team from Altius Minerals, on advancing the exploration of Canstar's district-scale properties in the province. I am especially excited about exploration on the newly optioned Golden Baie project in south Newfoundland, given the exceptional gold grades discovered at surface recently."
Canstar would like to thank Dennis Peterson for his dedication as interim CEO. Mr. Peterson will continue to serve as chairman of the company's board of directors.
First tranche of private placement
The first tranche of the offering consists of an aggregate of 4,761,920 units (each a part and parcel
unit) at a price of 10.5 cents per part and parcel unit for gross proceeds of $500,001.60. Each part and parcel unit was composed of one common share in the capital of the company and one common share purchase warrant at an exercise price of 21 cents per warrant for two years from the date of issuance. Canstar intends to close a further $1.5-million in subscriptions in a second tranche of the offering, for an aggregate total amount of approximately $2-million..
The company intends to use the net proceeds raised from the offering for general corporate purposes, working capital, and exploration expenses on the company's properties, including Buchan's/Mary March, Daniel's Harbour and Golden Baie. In particular, the proceeds from the sale of part and parcel units will be used to finance the exploration expenditure commitment on the Golden Baie project, subject to the approval of the TSX Venture Exchange.
Directors and management of the company acquired an aggregate of 1,820,050 part and parcel units in the offering for aggregate proceeds of approximately $191,100, which participation constituted a related-party transaction as defined under Multilateral Instrument 61-101 (Protection of Minority Security Holders in Special Transactions). Such participation is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of the part and parcel units acquired by the insiders, nor the consideration for the part and parcel units paid by such insiders exceed 25 per cent of the company's market capitalization.
No finders' fees were paid on the offering. All securities issued pursuant to the offering are subject to the applicable statutory hold period of four months and one day from the closing. The offering is subject to the final approval of the TSX Venture Exchange.
About Canstar Resources Inc.
Canstar Resources is a mineral exploration and development company focused on creating shareholder value through discovery and development of economic mineral deposits in Newfoundland, Canada. Canstar is in the process of completing option agreements on the Golden Baie project in south Newfoundland, a large claim package (660 square kilometres) with recently discovered, multiple outcropping gold occurrences. The company also holds the Buchan's/Mary March project and other mineral exploration properties in Newfoundland and Labrador, Canada. Canstar Resources is based in Toronto, Canada, is listed on the TSX Venture Exchange and trades under the symbol ROX-V.
We seek Safe Harbor.
© 2020 Canjex Publishing Ltd. All rights reserved.