Cullinan Metals arranges private placements

Oct 13, 2023

2023-10-12 19:22 ET – News Release

An anonymous director reports

CULLINAN METALS ANNOUNCES PRIVATE PLACEMENTS

Cullinan Metals Corp. has arranged non-brokered private placements of up to 943,397 Quebec flow-through (FT) units at a price of 26.5 cents per Quebec flow-through unit for gross proceeds of up to $250,000 and up to 250,000 non-flow-through (NFT) units at a price of 20 cents per unit for gross proceeds of up to $50,000.

FT offering

Each Quebec flow-through unit consists of one flow-through common share and one-half of one transferable non-flow-through common share purchase warrant. Each FT share will qualify as a flow-through share within the meaning of Subsection 66(15) of the Income Tax Act (Canada) and, in respect of eligible Quebec resident subscribers, Section 359.1 of the Taxation Act (Quebec).

Each NFT warrant entitles the holder to purchase one additional share at a price of 40 cents per share for a period of two years following closing of the FT offering, subject to an acceleration provision in the event that the shares trade at $1 and above for 10 consecutive trading days.

The gross proceeds from the FT shares will be used to incur Canadian exploration expenses and will qualify as flow-through mining expenditures, as both terms are defined in the Income Tax Act (Canada), related to the company’s eligible projects in Quebec. The qualifying expenditures will be renounced in favour of the subscribers with an effective date of no later than Dec. 31, 2023, and as required under the act.

NFT offering

Each unit consists of one common share and one transferable common share purchase warrant. Each warrant entitles the holder to purchase one additional share at a price of 30 cents per share for a period of three years following closing of the NFT offering.

The gross proceeds from the NFT offering will be used to fund working capital requirements.

The company may pay finders’ fees as consideration for the services provided by finders in connection with the FT and NFT offerings.

Closing of the offerings is expected to occur on or before Oct. 18, 2023. All securities to be issued pursuant to the offerings will be subject to a restricted hold period of four months and one day under applicable Canadian securities legislation.

About Cullinan Metals Corp.

Cullinan is a Canadian mining and exploration company focused on the development of energy metals. Cullinan is focused on key energy resources, such as the development of copper, graphite and lithium assets around the world.

We seek Safe Harbor.

https://www.cullinanmetals.com/