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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What is meant by 'Charity arrangement' and 'Presidents List' in this news release?
Is this NR positive for shareholders?
Thanks,
KELOWNA, BC, Aug. 1, 2019 /CNW/ - Cantex Mine Development Corp. (the "Corporation" or "Cantex") (TSX-V: CD) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. (the "Underwriters") in connection with a "bought deal" private placement of an aggregate of 1,588,000 common shares of the Corporation that will qualify as "flow-through shares" (within the meaning of subsection 66(15) of the Income Tax Act (Canada)) ("Flow-Through Shares") for aggregate gross proceeds of C$10 million (the "Offering"). In connection with the Offering; (i) 921,000 Flow-Through Shares will be issued as part of a charity arrangement at an issue price of C$6.52 per Flow-Through Share (the "Charity Issue Price") for gross proceeds of C$6,004,920; and (ii) 667,000 Flow-Through Shares will be issued at C$6.00 per Flow-Through Share (the "FT Issue Price") for gross proceeds of C$4,002,000.

In addition, the Underwriters have been granted an option to sell up to that number of an additional Flow-Through Shares at the Charity Issue Price and/or the FT Issue Price for additional gross proceeds of up to C$2,000,000.

The gross proceeds from the Offering will be used by the Corporation to incur 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 Corporation's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the Flow-Through Shares effective December 31, 2019.

The Offering is expected to close on or about August 22, 2019 and is subject to certain closing conditions including, but not limited to, the receipt of all necessary approvals including the conditional listing approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The Offering is being made by way of private placement in Canada. The securities issued under the Offering will be subject to a hold period in Canada expiring four months and one day from the closing date of the Offering. The Offering is subject to final acceptance of the TSX Venture Exchange.

The Underwriters will receive a cash commission equal to 6.0% of the gross proceeds of the sale of the Flow-Through Shares, payable on Closing to the Underwriters (other than in respect of sales of Flow-Through Shares to those persons on the "Presidents List" on which the fee shall be 3%).
Read Answer Asked by Tim on August 02, 2019
Q: Is CEF and CEF.U a good choice as a holding of gold and silver bullion. I realise there are storage costs involved but can you suggest an alternative that also holds the actual metals in storage. Preferably with lower MER than what Sprott collects on CEF at .73%.
An e.t.f. perhaps? Or just go with a solid producer such as AEM and forget bullion.
The maximum 5% holding is for portfolio insurance.
Thank you.
Read Answer Asked by Gerald on July 25, 2019
Q: Can I get your advice on what to do with KNT. I bought in at just under $1 and have made a decent profit so far. I know you should let your winners run. I was wondering if you feel the current valuation is fair or has it over shot a little. I feel that the price of gold maybe responsible for some of the gains and KNT could drop quite a bit if gold reverses.
Read Answer Asked by Nicholas on July 24, 2019
Q: Good morning. Would you mind ranking, regarding future prospects, the companies listed. Hold or sell advice would be appreciated. I plan on buying KL and AEM with any proceeds.
Read Answer Asked by Brad on July 23, 2019