Cava Resources Increases Private Placement to C$2.5 Million
TSX VENTURE: GDBO
Toronto, Ontario--(Newsfile Corp. - November 27, 2017) - Cava Resources Inc. (TSXV: CVA) ("Cava" or the "Company") announced today that it has increased its previously announced private placement financing (see news release dated November 20, 2017) to be comprised of either flow-through units ("FT Units")or units ("Units") for total gross proceeds of up to $2,500,000.
As previously disclosed, each Unit will have a subscription price of $0.20 per Unit and consist of one common share and one-half of one share purchase warrant, with each warrant entitling the holder to purchase one common share at $0.50 per share until the close of business on the day which is 36 months from the date of issue of the warrant. Each FT Unit will have a subscription price of $0.25 per FT Unit and consist of one common share and one-half of one share purchase warrant, with each warrant entitling the holder to purchase one common share at $0.50 per share until the close of business on the day which is 36 months from the date of issue of the warrant.
The proceeds of this financing are to be used for working capital purposes and to fund the purchase of specialized gold processing equipment as specified in the agreement to acquire Gold Rush Cariboo Inc. and pursuant to that company's agreement with Goldlands Inc. as outlined in the press release on September 29, 2017.
About Cava Resources Inc.
Cava is a junior exploration company whose primary property consists of its Casa Berardi properties which comprises two non-contiguous claim groups (the Casa Berardi North and the Cancor Extension) that are located in the Casa Berardi area of northwestern Quebec. Cava holds a 70% interest in these properties.
During the past year, Cava has been investigating other opportunities and carrying out due diligence. It has now entered into an agreement with Gold Rush Cariboo Inc. ("Gold Rush") to acquire all of the outstanding shares of Gold Rush in exchange for 12,600,000 shares of Cava. Gold Rush has an agreement with Goldlands Inc. to acquire the Horseshoe Bend property in southwest British Columbia and an option to acquire an additional 14 properties. Further details of this transaction, which is subject to regulatory approval, can be seen in Cava's press release dated September 29, 2017.