Core Assets Announces $1.5 Million Private Placement Led By Crescat Capital

Rhea-AI Summary

Core Assets Corp. has announced a non-brokered private placement to raise $1.5 million by issuing 6.25 million units at $0.24 per unit. Each unit consists of one common share and a warrant for an additional share at $0.39 for two years. Crescat Capital is investing $1.07 million, becoming the company's first institutional investor. Proceeds will fund exploration at the Blue Property and general working capital. The offering is subject to a four-month hold, with further restrictions on resale for 18 months.

Positive

• Successful arrangement of a private placement raising $1.5 million.
• Strategic investment from Crescat Capital, enhancing institutional support.
• Proceeds earmarked for exploration at the promising Blue Property.

Negative

• No immediate financial metrics indicating profitability or resource viability.

VANCOUVER, BC / ACCESSWIRE / January 4, 2021 / Core Assets Corp., ("Core Assets" or the "Company") (CSE:CC) (Frankfurt:5RJ WKN:A2QCCU) (ISIN:CA 21871U 10 5) (OTCQB:CCOOF) is pleased to announce it has arranged a non-brokered private placement (the "Offering") of 6,250,000 units (each, a "Unit") at a price of $0.24 per Unit for gross proceeds of $1,500,000. Each Unit will be comprised of one common share (each, a "Share") in the capital of the Company and one whole transferable Share purchase warrant (each, a "Warrant"). Each Warrant will entitle the holder to purchase one additional Share (each, a "Warrant Share") for a period of two years from the closing date (the "Closing Date") at an exercise price of $0.39 per Warrant Share.

In connection with the Offering, Crescat Capital LLC ("Crescat Capital") has agreed to make a strategic investment in the Company of $1,070,000 (the "Crescat Capital Investment"). Following the completion of the Crescat Capital Investment, Crescat Capital will have an option to participate in future financings of the Company to maintain its interest in the Company for so long as it holds greater than 3% of the issued and outstanding Common Shares.

Core Assets' President and CEO Nick Rodway comments: "We are very happy to welcome Crescat Capital as our first institutional investor in the Company. The Blue Property hosts a brand-new at surface polymetallic discovery that continues to produce world class results that make the company a very attractive investment. Having Crescat Capital's team onboard further verifies that we have been executing very sound geologic programs within the right geologic terrane and jurisdiction. We look forward to continuing to build our geological team with high quality, long term financial backing."

Crescat Capital's Geological and Technical Director Quinton Hennigh comments: "Through boots-on-the-ground prospecting in 2021, Core Assets Corp appears to have made a substantial grass roots CRD discovery at its 100% controlled Blue Property in northern British Columbia. Numerous outcrops of sulfide mantos and chimneys were identified and sampled over a 6 km wide area at the Silver Lime area, recently exposed due to receding ice packs in this region. Many samples have yielded +10% combined base metals as well as locally strong silver and gold values. This discovery represents a new style of mineralization in this region and is believed to be associated with a porphyry system at depth. At Crescat, we love to get behind early-stage discoveries, especially those that look like they have exceptional large-scale potential such as Silver Lime. We look forward to working with Core Assets' team as they develop plans for an inaugural drill test in 2022."

All securities issued in connection with the Offering will be subject to a four month hold as required under applicable securities laws and, in addition, will be subject to an 18 month hold from the Closing Date split up into 3 releases of one third (1/3) of the securities issued under the Offering every six months from the Closing Date.

The proceeds of the Offering are anticipated to be used for further exploration programs at the Company's Blue Property and for general working capital purposes. Insiders of the Company may participate in the Offering. The Company does not anticipate paying any finder's fees in connection with the Offering at this time.

None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Core Assets Corp.

Core Assets Corp. is a Canadian mineral exploration company focused on the acquisition and development of mineral projects in British Columbia, Canada. The company currently holds 100% title ownership in the Blue Property, which covers a land area of ~108,337 Ha (~1,083 km²). The project lies within the Atlin Mining District, a well-known gold mining camp. The Blue Property hosts a major structural feature known as The Llewellyn Fault Zone ("LFZ"). This structure is approximately 140km in length and runs from the Tally-Ho Shear Zone in the Yukon, south through the property to the Alaskan Panhandle Juneau Ice Sheet in the United States. Core Assets believes that the south Atlin Lake area and the LFZ has been neglected since the last major exploration campaigns in the 1980's. The LFZ plays an important role in mineralization of near surface metal occurrences across the property. The past 50 years have seen substantial advancements in the understanding of porphyry, skarn, and carbonate replacement type deposits both globally and in BC's Golden Triangle. The Company hopes to leverage this information at its Blue Property. Core Assets is excited to become one of Atlin Mining District's premier explorers where its team believes there are substantial opportunities for new discoveries and development in the area.

On Behalf of the Board of Directors
CORE ASSETS CORP.

"Nicholas Rodway"

President & CEO
Tel: 604.681.1568

FORWARD LOOKING STATEMENTS

Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include, but are not limited to, that Core Assets will be able to close the Offering or the Crescat Capital Investment (or its respective size), as applicable, the anticipated use of proceeds from the Offering, and any statements regarding the Company's ability to continue building a world class geological team with high quality, long term financial backing. It is important to note that the Company's actual business outcomes and exploration results could differ materially from those in such forward-looking statements. Risks and uncertainties include that: the Company may be unable to close the Offering; further permits may not be granted timely or at all; the mineral claims may prove to be unworthy of further expenditure; there may not be an economic mineral resource; methods we thought would be effective may not prove to be in practice or on our claims; economic, competitive, governmental, environmental and technological factors may affect the Company's operations, markets, products and prices; the Company's specific plans and drilling timing, field work and other plans may change; the Company may not have access to, or be able to develop any minerals because of cost factors, type of terrain, or availability of equipment and technology; and the Company may also not raise sufficient funds to carry out its plans. The novel strain of coronavirus, COVID-19, also poses new risks that are currently indescribable and immeasurable. Additional risk factors are discussed in the section entitled "Risk Factors" in the Company's Management Discussion and Analysis for its recently completed fiscal period, which is available under Company's SEDAR profile at www.sedar.com. Except as required by law, we will not update these forward looking statement risk factors.

The CSE (operated by CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

SOURCE: Core Assets

View source version on accesswire.com:
https://www.accesswire.com/680689/Core-Assets-Announces-15-Million-Private-Placement-Led-By-Crescat-Capital

FAQ

What is the purpose of Core Assets Corp's recent private placement?

The proceeds from the private placement will be used for exploration programs at the Blue Property and for general working capital.

How much is Crescat Capital investing in Core Assets Corp?

Crescat Capital is making a strategic investment of $1.07 million in Core Assets Corp.

What is the price per unit in the recent private placement by Core Assets Corp?

Each unit in the private placement is priced at $0.24.

What are the terms for warrants attached to the units in Core Assets Corp's offering?

Each warrant allows the holder to purchase an additional share at an exercise price of $0.39 for two years.

What restrictions are there on the securities issued in Core Assets Corp's offering?

The securities will be subject to a four-month hold as well as an 18-month hold with staggered releases.