Canuc Resources Corporation (“Canuc” or the “Company”) (TSX-V: CDA) announces the closing of a non-brokered Private Placement for gross proceeds of $517,500. The closing of this Private Placement results in issuance of 5,175,000 Units. Each Unit consists of one common share (“Common Share”) priced at 10 cents and one half of one warrant (“Warrant”). Each Warrant entitles the holder to purchase one additional Common Share at 15 cents for a period of two years from the closing of the Private Placement. All securities issued under this Private Placement will be subject to a hold period expiring four months and one day from the date of closing. Proceeds of this Private Placement will be used for exploration at the Company’s San Javier Silver-Gold Project, and for general working capital.
An Officer of the Company (the “insider”) has invested in this Private Placement subscribing for in aggregate 350,000 Units, or gross proceeds of $35,000. The participation of insiders in the Private Placement constitutes a “related party transaction” within the meaning of the Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”) and the policies of the TSX. The Company is relying on the exemptions from the formal valuation and minority approval requirements contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 on the basis that participation in the private placement by insiders will not exceed 25% of the fair market value of the Company’s market capitalization. The Company did not file a material change report at least 21 days prior to the completion of the private placement since the existence of any placement or insiders’ participation therein was not determined at that time.
The Company would like to also announce that it has reduced the Net Smelter Royalty (“NSR”) held against the San Javier Silver-Gold Project from 2.5% to 1.5% as a result of an agreement signed between the Company and two NSR holders. The two NSR holders relinquished 0.5% each for a total of 1% reduction in the NSR related to the property, in exchange for $70,000 CAD.
In connection with this Private Placement, the Company will pay a total of $4,800 in cash and issue 23,600 broker warrants to Aligned Capital Partners. Each broker warrant will entitle the holder to purchase one Common Share at 15 cents for a period of two years from the closing of the Private Placement.
Closing of this Private Placement is subject to final approval by the TSX Venture Exchange.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Canuc is a junior resource company holding the San Javier Silver-Gold Project in Sonora State, Mexico. The Company generates cash flow from natural gas production at its MidTex Energy Project in Central West Texas, USA where Canuc has an interest in eight producing gas wells and has rights for further in field developments. Canuc also has exclusive rights, through a Partnership Agreement with Ioticiti Networks Inc., to sell Industrial IoT applications and infrastructure in the Provinces of Alberta and Saskatchewan, Canada and in the State of Texas, USA.