TORONTO, July 9, 2021 /CNW/ - Adventus Mining
Corporation ("Adventus" or the
"Company") (TSXV: ADZN) (OTCQX: ADVZF) is pleased to
announce that it has entered into an agreement with 2176423 Ontario
Ltd., a private company controlled by Eric
Sprott, to sell 17,336,339 common shares (the "Shares") of
Canstar Resources Inc. ("Canstar") (TSXV: ROX) (OTCQB: CSRNF) at a
price of $0.375 per Share for gross
proceeds to Adventus in the amount of $6,501,127.12 (collectively, the "Sale
Transaction").
Christian Kargl-Simard, President
and CEO of Adventus commented, "We are excited at the ongoing
momentum and success Canstar is having in Newfoundland, Canada, but must continue to
focus on advancing and de-risking our core copper-gold business in
Ecuador. We are pleased to have
found an investor as renowned as Eric
Sprott to purchase our Canstar stake with a longer-term
vision for the business. As this ownership stake was non-core, the
funds will go towards incremental exploration and development
expenditures in Ecuador as well as
general working capital and corporate purposes."
The Sale Transaction is scheduled to close in two tranches: the
first tranche of 10,401,802 Shares is anticipated to close on or
about July 15, 2021 for proceeds of
$3,900,675.75 and the second tranche of 6,934,537 Shares is
anticipated to close on or about August 17,
2021 for proceeds of $2,600,451.37 following release from
escrow, subject to customary closing conditions. All currencies
referenced in this news release are in Canadian dollars.
Early Warning Disclosure
Upon closing of the Sale Transaction, Adventus will no longer
hold any common shares in Canstar.
Adventus will file an early warning report under National
Instrument 62-103 in connection with the closing of the Sale
Transaction. As Adventus will have decreased its security holdings
in Canstar below 10%, following the foregoing early warning report
filing, it will no longer be required to report under the early
warning requirements of National Instrument 62-104 – Take-Over
Bids and Issuer Bids with respect to Canstar, unless its
security holdings in Canstar increases to 10% or more in the
future.
Neither the 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 news release.
This press release contains "forward -looking information"
within the meaning of applicable Canadian securities laws. Any
statements that express or involve discussions with respect to
predictions, expectations, beliefs, plans, projections, objectives,
assumptions or future events or performance (often, but not always,
identified by words or phrases such as "believes", "anticipates",
"expects", "is expected", "scheduled", "estimates", "pending",
"intends", "plans", "forecasts", "targets", or "hopes", or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "will",
"should" "might", "will be taken", or "occur" and similar
expressions) are not statements of historical fact and may be
forward-looking statements.
Forward-looking information herein includes, but is not limited
to, statements that address activities, events, or developments
that Adventus expect or anticipate will or may occur in the future.
Although Adventus have attempted to identify important factors that
could cause actual actions, events, or results to differ materially
from those described in forward-looking information, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, and actual results and
future events could differ materially from those anticipated in
such information. Accordingly, readers should not place undue
reliance on forward-looking information. Adventus undertake to
update any forward-looking information except in accordance with
applicable securities laws. Forward looking information in this
news release includes the future closing of the Sales Transaction
and the anticipated timing thereof; and the Company's future
ownership of common shares of Canstar.
SOURCE Adventus Mining Corporation
