Constantine closes $8.39M first tranche of financing

May 30, 2018

2018-05-30 10:41 ET – News Release

Also News Release (C-ALS) Altius Minerals Corp

Mr. Garfield MacVeigh of Constantine Metal reports

CONSTANTINE ANNOUNCES $8,392,569 FIRST TRANCHE CLOSING OF NON-BROKERED PRIVATE PLACEMENT

Constantine Metal Resources Ltd. has closed the first tranche of its previously announced $10-million private placement. The first tranche consisted of 12,342,013 units at a price of 68 cents per unit for aggregate gross proceeds of $8,392,569. The units were placed with strategic investors, existing shareholders and insiders. This includes significant investments by the Electrum Strategic Opportunities Fund II LP, an investment fund managed by The Electrum Group LLC, and participation by Altius Minerals Corp. and John Tognetti, a major shareholder and insider.

Each Unit consisted of one share and one transferable share purchase warrant. Each warrant from the first tranche entitles the holder to purchase one common share at a price of $1.00 per share until May 29, 2023. Under the terms of its unit purchase agreement with the Company, Electrum has certain pre-emptive rights on future financings and, as of the closing of the first tranche private placement, the right to select one director to be appointed to the Company’s board of directors and has named Mr. Stuart Harshaw, a seasoned mining executive with a successful international career at Vale and Inco. Mr. Harshaw earned a BSc in Metallurgical Engineering from Queen’s University and an MBA from Laurentian University. Upon completion of the second tranche closing, Electrum will have the right to name one additional director to be appointed to the board of directors (for a total of two).

In connection with the first tranche of the private placement, the Company paid cash finder’s fees to Haywood Securities Inc. and Canaccord Genuity Corp. totaling $147,188, based on 4% of gross proceeds raised through the sale of Units to purchasers introduced by them to the Company.

The Company expects to complete a second tranche closing of the private placement to Electrum, consisting of 2,363,868 Units for proceeds of $1,607,430. Closing is expected to occur in the third week of July, following the July 12, 2018 annual general meeting of the Company, at which shareholders will be asked to approve Electrum as a new Control Person of the Company. Following the closing of the second tranche of the private placement, Electrum will have completed a $6,000,000 investment in the Company and will own 9,073,529 common shares of the Company, representing approximately 20.6% of the outstanding shares of the Company.

Total shares issued and outstanding after completion of the second tranche are projected to be 44,041,752 and fully diluted 61,678,883 shares. Closing of the second tranche of the private placement remains subject to shareholder approval and approval of the TSX Venture Exchange.

The Company intends to use the net proceeds of the private placement for advancement of the Company’s Palmer Copper-Zinc-Silver-Gold Project located in Alaska and for general corporate purposes.

About Altius Minerals Corp.

Altius directly and indirectly holds diversified royalties and streams that generate revenue from 15 operating mines. These are located in Canada and Brazil and produce copper, zinc, nickel, cobalt, iron ore, potash and thermal (electrical) and metallurgical coal. The portfolio also includes numerous pre-development stage royalties covering a wide spectrum of mineral commodities and jurisdictions. In addition, Altius holds a large portfolio of exploration stage projects which it has generated for deal making with industry partners that results in newly created royalties and equity and minority interests.

2018 Palmer Budget and Program

Constantine Mining LLC members (Constantine North Inc. 51% and Dowa Metals & Mining, Alaska Ltd, 49%) approved a US $10 million 2018 budget that includes a 10,000 meter drill program using two rigs starting early June. Constantine’s 51% share of the LLC budget to year end is approximately US$4.5 million.

The 2018 drill program will continue to have a dual focus of exploring for new deposits while also systematically defining and expanding the South Wall & RW Zone mineral resources and expanding the new 2017 AG Zone discovery located 3 kilometers from the South Wall mineral resource. Drilling will also test new exploration targets which coincide with areas of VMS style mineralization and hydrothermal alteration exposed at surface that have been prioritized by the 2017 airborne electromagnetic survey. Other activities include new metallurgical studies and an updated mineral resource estimate (last updated in 2015) to be used for a Preliminary Economic Assessment study later in the year. Plans are also being advanced to initiate the permitting of underground exploration development.

About the Company

Constantine is a mineral exploration company led by a proven technical team with a focus on premier North American mining environments. The Company’s flagship asset is the high grade copper-zinc-silver-gold Palmer Project that is being advanced as a joint venture between Constantine (51%) and Dowa Metals & Mining Alaska Ltd. (49%), with Constantine as operator. Palmer hosts an Inferred Mineral Resource of 8.1 million tonnes grading 1.41% copper, 5.25% zinc, 0.32 g/t gold and 31.7 g/t silver*, and is located in a very accessible part of coastal Southeast Alaska, with road access to the edge of the property and within 60 kilometers of the year-round deep sea port of Haines. Constantine also controls a portfolio of high-quality, 100% owned, gold projects in the Timmins camp, Ontario. This includes the large, well located Golden Mile Property in Timmins and the Munro Croesus Gold Property that is renowned for its exceptionally high-grade past production. Management is committed to providing shareholder value through discovery, meaningful community engagement, environmental stewardship, and responsible mineral exploration and development activities that support local jobs and businesses.

We seek Safe Harbor.

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