Core Assets Closes Private Placement of C$1,660,495

Rhea-AI Summary

Core Assets Corp. (CSE:CC | OTCQB:CCOOF) successfully completed a non-brokered private placement, raising $1,660,495.03 by issuing 2,722,123 units at $0.61 each. The offering was oversubscribed by 263,107 units. Each unit consists of one common share and half a warrant, allowing the purchase of additional shares at $0.85 for two years. Proceeds will fund exploration at the Blue Property and working capital. The release also notes a related party transaction involving 8,500 units issued to CFO Jody Bellefleur.

Positive

• Successfully raised $1,660,495.03 through an oversubscribed private placement.
• Funds will support further exploration at the Blue Property, enhancing potential for discovery.

Negative

• Related party transaction may raise governance concerns among investors.

VANCOUVER, BC / ACCESSWIRE / August 26, 2022 / 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 that it has completed its previously announced non-brokered private placement offering, which was oversubscribed by 263,107 units (the "Offering"). Pursuant to the Offering, the Company issued an aggregate of 2,722,123 units (each, a "Unit") at a price of $0.61 per Unit for gross proceeds of $1,660,495.03.

Each Unit is comprised of one common share (each, a "Share") in the capital of the Company and one-half of one transferable Share purchase warrant (each, a "Warrant"). Each Warrant entitles the holder thereof 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 $0.85 per Warrant Share.

All securities issued in connection with the Offering are subject to a four month hold as required under applicable securities laws.

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.

Jody Bellefleur, the Chief Financial Officer of the Company, was issued 8,500 Units under the Offering. Accordingly, Ms. Bellefleur's subscription constituted a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance to the insider was exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the related parties did not exceed 25% of the Company's market capitalization.

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% ownership in the Blue Property, which covers a land area of 111,648.8 ha (~1,116 km²). The project lies within the Atlin Mining District, a well-known gold mining camp located in the unceded territory of the Taku River Tlingit First Nation and the Carcross/Tagish First Nation. The Blue Property hosts a major structural feature known as The Llewellyn Fault Zone ("LFZ"). This structure is approximately 140 km in length and runs from the Tally-Ho Shear Zone in the Yukon, south through the Blue 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 Blue 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 has leveraged this information at the Blue Property to tailor an already proven exploration model and believes this could facilitate a major discovery. 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, the anticipated use of proceeds from the Offering, and any statements regarding the Company's business, properties and future exploration goals; that the LFZ structural feature on the Blue Property plays an important role in mineralization of near surface metal occurrences across the property; and that the Blue Property has substantial opportunities for a discovery and development. 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 use the proceeds from the Offering differently than as disclosed herein; 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 Corp.

View source version on accesswire.com:
https://www.accesswire.com/713651/Core-Assets-Closes-Private-Placement-of-C1660495

FAQ

What is the purpose of Core Assets Corp's private placement on August 26, 2022?

The private placement aims to raise funds for exploration at the Blue Property and for general working capital.

How much capital did Core Assets Corp raise in its August 2022 private placement?

Core Assets Corp raised $1,660,495.03 by issuing 2,722,123 units at $0.61 each.

What are the terms of the warrants issued by Core Assets Corp in the private placement?

Each warrant allows the holder to purchase one additional share at an exercise price of $0.85 for two years.

Did Core Assets Corp's private placement involve any related party transactions?

Yes, CFO Jody Bellefleur was issued 8,500 units, constituting a related party transaction.

What is the significance of the Blue Property for Core Assets Corp?

The Blue Property offers substantial opportunities for mineral discovery and development, covering an area of 111,648.8 ha.