Callinex Mines (CNX.V) has announced it has signed a term sheet with Sprott Private Wealth to complete a non-brokered financing to raise C$5M. The offering will consist of 8 million units at 50 cents,and an additional 1.82 million (flow-through) units at C$0.55 for a total of C$5M. Each unit will consist of one share and half a warrant which will be valid for three years with a strike price of C$0.75. There’s an acceleration clause which could be invoked if the company’s share price is trading above a dollar for at least 15 consecutive days.
The fact the Sprott affiliates are so keen to commit to raise C$5M (and fund managed by Rick Rule will participate directly) is a really important vote of confidence. Not only is it very positive to have someone like Rick Rule as a shareholder, it also means other entities are seeing the value in Callinex Mines where the discovery hole really is a major step forward. And with an additional 5M in the bank (increasing the cash position to 7-8M after the current drill program), Callinex Mines will be well-capitalized to continue to increase the value for its shareholders.