Casa Minerals Announces Private Placement Continuation

Rhea-AI Summary

Casa Minerals has announced the continuation of its non-brokered private placement, aiming to raise up to $750,000 by offering 15,000,000 units at $0.05 per unit. Each unit includes one common share and one warrant, allowing the holder to purchase an additional share at $0.10 within two years. If the stock price exceeds $0.17 for seven consecutive trading days, Casa can mandate the exercise of warrants within 30 days. The funds will be allocated to exploration and development of their Congress project in Arizona and other BC projects, along with general corporate purposes. A Finder's Fee of 7% is applicable, and shares and warrants are subject to a 4-month hold period. The offering is pending TSX Venture Exchange approval.

Positive

• Intends to raise up to $750,000 through private placement.
• Each unit consists of one common share and one warrant, providing potential for future investment.
• Warrants allow purchase of additional shares at $0.10 for two years, potentially increasing investor returns.
• Funds will be used for exploration and development activities, supporting growth projects in Arizona and BC.
• Finder's Fee incentivizes third-party participation, potentially increasing offering success.

Negative

• All shares and warrants are subject to a 4-month hold period, restricting immediate liquidity.
• Completion of the private placement is subject to TSX Venture Exchange approval, presenting regulatory risk.
• No securities issued will be registered under the United States Securities Act, limiting US investor participation.
• Potential dilution of existing shares due to the issuance of new shares and warrants.

Vancouver, British Columbia--(Newsfile Corp. - May 24, 2024) - Casa Minerals Inc. (TSXV: CASA) (OTC Pink: CASXF) (FSE: 0CM) (the "Company" or "Casa"), is pleased to announce that it is continuing to raise capital as noted in its news release from April 12, 2024.

The non-brokered private placement (the "Offering") intends to raise up to 15,000,000 units at a price of $0.05 per unit for gross proceeds of up to $750,000.

Each unit will consist of one common share in the capital of the Company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each warrant (the "Warrant") will entitle the holder to acquire one Common Share for a period of two years from the Closing Date at a price of $0.10. The warrants will be subject to an acceleration clause whereby if the Common shares of the Company, traded on the TSX-V, trade at a volume weighted average price exceeding $0.17 per Common share for a period of 7 consecutive trading days. At that time the Issuer may, at its discretion, deliver a notice (the "Notice") to the Warrant holders notifying such Warrant holders that they must exercise their Warrants within thirty (30) days from the date of such Notice.

Net proceeds from the Offering will be used for exploration and development activities on the Company's Congress project, the historic gold mine in Arizona, USA, and its BC projects, and for general working and corporate purposes.

All Common Shares and Warrants comprising the Units, will be subject to a 4-month hold period from the date of issuance, during which any resale or other transfer will be restricted in accordance with applicable securities laws.

A Finder's Fee of 7% in cash or Shares is payable to eligible finders on all or a portion of the Offering. The "Finder" will also receive "Finder's warrants" (the Finders Warrants) entitling it to purchase up to 7% of the shares issued to the purchaser introduced by the Finder under the Offering exercisable at the issue price of $0.10 for a period of 24 months from the Closing Date.

The completion of the private placement remains subject to approval of the TSX Venture Exchange.

None of the securities issued in the Offering will be registered under the United States Securities Act of 1933, as amended (the "1933 Act"), and none of them may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the 1933 Act. This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of the securities in any state where such offer, solicitation, or sale would be unlawful.

About Casa Minerals Inc.

The Company is engaged in the acquisition, exploration and development of mineral properties located in Canada and the USA. Casa owns ninety percent (90%) interest in the Congress gold mine (Arizona, USA). Additionally, the Company owns a one hundred percent (100%) interest in the polymetallic Pitman and Keaper properties (BC, Canada) and has an option to acquire a seventy-five percent (75%) interest in the Arsenault VMS Property (BC, Canada).

On Behalf of Board of Directors
Farshad Shirvani, M.Sc. Geology
President and CEO

For more information, please contact:
Casa Minerals Inc.
Farshad Shirvani, President & CEO
Phone: (604) 678-9587
Email: contact@casaminerals.com
https://www.casaminerals.com

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.

Certain of the statements made and information contained herein may constitute "forward-looking information." In particular references to the private placement and future work programs or expectations on the quality or results of such work programs are subject to risks associated with operations on the property, exploration activity generally, equipment limitations and availability, as well as other risks that we may not be currently aware of. Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/210590

FAQ

What is the goal of Casa Minerals' private placement?

The goal is to raise up to $750,000 by offering 15,000,000 units at $0.05 per unit.

What do the units in Casa Minerals' offering comprise?

Each unit includes one common share and one warrant to buy an additional share at $0.10 within two years.

What will the funds from Casa Minerals' private placement be used for?

The funds will be used for exploration and development activities on the Congress project in Arizona and other BC projects, as well as for general corporate purposes.

What is the significance of the warrant acceleration clause in Casa Minerals' offering?

If Casa Minerals' stock price exceeds $0.17 for seven consecutive trading days, warrant holders must exercise their warrants within 30 days upon receiving notice.

What is the hold period for shares and warrants in Casa Minerals' offering?

All shares and warrants are subject to a 4-month hold period from the date of issuance.

How does Casa Minerals incentivize finders in their private placement?

A Finder's Fee of 7% in cash or shares is payable, and finders also receive warrants to purchase up to 7% of the shares issued to purchasers they introduce.