Cartier Closes Private Placement for Total Proceeds of C$9.3M

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VAL D'OR, Quebec, Aug. 11, 2020 (GLOBE NEWSWIRE) -- Cartier Resources Inc. (TSX-V: ECR) (the “Company” or “Cartier’) announces that it has closed its previously announced private placement (the “Offering”) for aggregate gross proceeds of C$9,364,626. A total of 21,778,200 flow-through common shares of the Company at a price of C$0.43 per share, were issued. The Offering was completed through Paradigm Capital Inc. (the “Agent”).

In connection with the Offering, the Agent received a cash fee equal to 6% of the gross proceeds of the Offering and compensation options exercisable to acquire that number of common shares of the Company equal to 6% of the total number of shares issued and sold by the Company pursuant to the Offering, at an exercise price of $0.43 for a period of 12 months.

Pursuant to the Investor Rights Agreement between Cartier and Agnico Eagle Mines Limited (“Agnico Eagle”), Agnico Eagle elected to maintain its pro-rata 16.4% interest in Cartier.

The gross proceeds from the Offering will be used by the Company to advance and explore respectively the Company’s Chimo Mine and Benoist projects.  These expenditures will be eligible “Canadian exploration expenses” that will qualify as “flow-through mining expenditures” as such terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures”) related to the Company’s project in Québec. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2020.

The shares issued under the Offering are subject to a four month and one day hold period expiring on December 12, 2020.  The Offering remains subject to the final approval of the TSX Venture Exchange.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press 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 State in which such offer, solicitation or sale would be unlawful.

About Cartier

Cartier Resources Inc. was founded in 2006 and is based out of Val-d’Or, Quebec.  Quebec has consistently ranked high as one of the best mining jurisdictions in the world primarily based on its mineral rich geology, attractive tax environment, and pro-mining government.  In 2020, the Fraser Institute again ranked Quebec as one of the best jurisdictions in the world for investment attractiveness.