Toronto, Ontario--(Newsfile Corp. - February 21, 2017) - Canuc Resources Corporation (TSXV: CDA) ("Canuc" or the "Company") is pleased to announce that the Company has completed the reverse takeover transaction previously announced, on the terms set out in the business combination agreement dated August 26, 2016 (the "Transaction").
The Transaction involved the combination of Canuc and Santa Rosa Silver Mining Corp. ("Santa Rosa") by way of an amalgamation of Santa Rosa and a wholly-owned subsidiary of Canuc, to form one company as a wholly-owned subsidiary of Canuc. Pursuant to the amalgamation, all issued and outstanding securities in the capital of Santa Rosa were converted into like issued and outstanding securities of Canuc on a two-for-one basis. The Transaction was approved by written consent of the holders of more than 50% of the issued and outstanding common shares of the Company held by disinterested shareholders.
Final approval of the Transaction and the listing of the combined entity remains subject to a receipt by the TSX-V of satisfactory final documentation in respect of the Transaction and the issuance of the Final Exchange Bulletin.
Completion of Concurrent Financing
The Company is also pleased to announce that it has closed the concurrent financing of $2,000,000, representing the maximum financing amount disclosed in the filing statement filed in connection with the Transaction. The closing of this financing results in the issuance of 8,000,000 units, with each unit comprised of one common share and one half of one common share purchase warrant, with each unit priced at $0.25 (25 cents) and each share purchase warrant having a life of two years from the date of issue and an exercise price of $0.50 (50 cents).
In connection with the financing, Canuc will pay commission to Finley Holdings Ltd, Bonaventure Explorations Limited, and Leede Jones Gable Inc. aggregating to $150,617 CAD, 602,468 commission warrants and 75,064 commission units, with the commission units having the same terms and conditions as those units issued under the financing. The commission warrants have an exercise price of $0.25 (25 cents) but otherwise have the same terms and conditions as the warrants issued under the financing. The hold period for shares issued in the financing will be 4 months and funds will be used for the exploration and development of the Company's San Javier project in Sonora, Mexico and for general working capital purposes.
"We are very pleased to have satisfied the requirements of the Exchange for the RTO process involving Santa Rosa Silver Mining Corp. (The San Javier Project) and Canuc Resources Corporation. We will now move forward as expeditiously as possible to obtain final approval from the TSX-V for the resumption of trading of the Company's shares, and then to confirm values and project characteristics as outlined in our qualifying technical reports. We anticipate developing accretive shareholder value and are excited about prospects for the San Javier Project and bringing to market this silver/gold property." - Chris Berlet.
Board of Directors and Management
Following completion of the Transaction, the board and management team consists of the following individuals: Hubert Mockler (Director, Chairman and Chief Executive Officer), Christopher Berlet (Director), Marc-André Lavoie (Director), Paul Davis (Director), Bruce Reid (Director) and Julio DiGirolamo (Chief Financial Officer). In due course, the Company intends to augment its board and management teams with qualified individuals possessing financial, mining and geological experience. At the relevant time a further press release will provide details of the backgrounds and credentials of such individuals.
About Canuc
Canuc is a junior resources company engaged in the exploration and development of mineral properties in North America. In addition, the company is active in the development of a natural gas field in Central West Texas where it has an interest in seven producing gas wells. These wells generate a sustainable cash-flow with the potential to increase income by the drilling and completion of additional wells.
