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Home > News > Cartier Resources closes...

Cartier Resources closes private placement for $9.3Million

Aug 12, 2020


Cartier Resources Inc. has closed its previously announced private placement for gross proceeds of C$9,364,626. A total of 21,778,200 flow-through common shares of the Company at a price of C$0.43 per share, were issued. The Offering was completed through Paradigm Capital Inc.

Cartier Resources Inc. was founded in 2006 and is based out of Val-d’Or, Quebec.  Quebec has consistently ranked high as one of the best mining jurisdictions in the world primarily based on its mineral rich geology, attractive tax environment, and pro-mining government.  In 2020, the Fraser Institute again ranked Quebec as one of the best jurisdictions in the world for investment attractiveness.

  • The Company has a strong cash position with over $13.8 million in the bank and important corporate and institutional investors including Agnico Eagle Mines and the Quebec investment funds.
     
  • Cartier’s strategy is to focus on gold projects that have an exploration potential for rapid expansion.
     
  • The Company holds a portfolio of exploration projects in the Abitibi Greenstone Belt in Quebec – one of the most prolific mining regions in the world – the commodity focus is gold.
     
  • The Company is focused on advancing its four key projects through drill programs.  All of these projects were acquired at very reasonable valuations over the past few years.  All of them are drill-ready with targets identified similar to the deposits that have been outlined on each project.

In connection with the Offering, the Agent received a cash fee equal to 6% of the gross proceeds of the Offering and compensation options exercisable to acquire that number of common shares of the Company equal to 6% of the total number of shares issued and sold by the Company pursuant to the Offering, at an exercise price of $0.43 for a period of 12 months.

Pursuant to the Investor Rights Agreement between Cartier and Agnico Eagle Mines Limited (“Agnico Eagle”), Agnico Eagle elected to maintain its pro-rata 16.4% interest in Cartier.

The gross proceeds from the Offering will be used by the Company to advance and explore respectively the Company’s Chimo Mine and Benoist projects.  These expenditures will be eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) related to the Company’s project in Québec. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2020.

The shares issued under the Offering are subject to a four month and one day hold period expiring on December 12, 2020.  The Offering remains subject to the final approval of the TSX Venture Exchange.

 



Tags: Quebec / Deals & Financial / Gold / All Articles