2742 St. Joseph Blvd., Unit 200
Canada, K1C 1G5
| ||May 13, 2016|
16-10 - Cornerstone Announces Completion of $4.5 Million Financing
| ||Ottawa, ON, Canada: Cornerstone Capital Resources Inc. ("Cornerstone" or "the Company") (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) announces completion of its non brokered private placement announced on April 7, 2016.|
The financing consisted of the issuance of 90,000,000 units ("Units") at $0.05 per Unit for proceeds of $4.5 million. Each Unit consisted of one common share of the Company and one non-transferable share purchase warrant (a "Warrant"). Each Warrant entitles the holder to acquire one common share of the Company at a price of $0.10 until May 12, 2021. All shares issued and any shares issued on exercise of the warrants are subject to restrictions on transfer until September 13, 2016
Maxit Capital LP ("Maxit") acted as a finder in the private placement in respect of 41,000,000 Units. An Affiliate of Sprott Inc. ("Sprott") also acted as a finder in the private placement in respect of 14,685,519 Units. Finders' fees consisted of $58,742 paid to Sprott and 3,280,000 Units issued to Maxit. Additionally, Maxit received 3,280,000 finders' warrants and Sprott received 1,174,842 finders' warrants, each finder warrant entitling the holder to purchase one common share of the Company at a price of $0.05 until May 12, 2018.
A total of 34,314,481 Units were subscribed by current shareholders of the Company, management and directors.
This private placement is subject to final regulatory approval.
The proceeds from the private placement will be used to further advance Cornerstone's exploration work in Ecuador and Chile as well as general working capital.
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven ability to identify, acquire and advance properties of merit. The company's business model is based on generating exploration projects whose subsequent development is funded primarily through partnerships.
Further information is available on Cornerstone's website: www.cornerstoneresources.com and on Twitter. For investor, corporate or media inquiries, please contact:
Email: email@example.com; Tel. (613) 421-6923
This news release may contain 'Forward-Looking Statements' that involve risks and uncertainties, such as statements of Cornerstone's plans, objectives, strategies, intentions and expectations. The words "potential," "anticipate," "forecast," "believe," "estimate," "expect," "may," "project," "plan," and similar expressions are intended to be among the statements that identify 'Forward-Looking Statements.' Although Cornerstone believes that its expectations reflected in these 'Forward-Looking Statements' are reasonable, such statements may involve unknown risks, uncertainties and other factors disclosed in our regulatory filings, viewed on the SEDAR website at www.sedar.com. For us, uncertainties arise from the behaviour of financial and metals markets, predicting natural geological phenomena and from numerous other matters of national, regional, and global scale, including those of an environmental, climatic, natural, political, economic, business, competitive, or regulatory nature. These uncertainties may cause our actual future results to be materially different than those expressed in our Forward-Looking Statements. Although Cornerstone believes the facts and information contained in this news release to be as correct and current as possible, Cornerstone does not warrant or make any representation as to the accuracy, validity or completeness of any facts or information contained herein and these statements should not be relied upon as representing its views subsequent to the date of this news release. While Cornerstone anticipates that subsequent events may cause its views to change, it expressly disclaims any obligation to update the Forward-Looking Statements contained herein except where outcomes have varied materially from the original statements or as required by applicable law.
On Behalf of the Board,
President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities referred to in this news release have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
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