Cantex's Private Placement: Fueling Yukon's Critical Mineral Exploration

Cantex Mine Development Corp. (TSXV: CD) (OTCQB: CTXDF) has received approval for a $600,000 non-brokered private placement, further boosting its financial flexibility and accelerating exploration on its North Rackla project in the Yukon. This strategic move aligns with Cantex's long-term goal of developing critical mineral resources and capitalizing on the growing demand for these essential materials.

The private placement, approved by the TSX Venture Exchange, involves the issuance of 4,000,000 common flow-through shares (FT Shares) at $0.15 per share. The proceeds will be used to fund qualified critical mineral exploration expenditures on the North Rackla project, where high-grade silver-lead-zinc-germanium mineralization has been discovered over 2.3 kilometers of strike length and 700 meters depth. With over 60,000 meters of drilling, the mineralization remains open along strike and to depth, indicating significant potential.



The private placement represents a 2.5% dilution of outstanding shares, assuming a pre-issuance share count of 160 million. Additionally, 200,000 finders warrants, exercisable at $0.15 for two years, further dilute shareholders by 0.125%. The FT Shares and warrants are subject to a four-month hold period, expiring on April 24, 2025.

Cantex's strategic location and experienced management, led by Dr. Charles Fipke, founder of Ekati, Canada's first diamond mine, enhance the project's potential. The private placement also strengthens Cantex's balance sheet, reducing its reliance on debt financing and enhancing its ability to weather market fluctuations.



Investing in critical mineral exploration in the Yukon, such as Cantex's North Rackla project, presents both potential benefits and risks. The Yukon's vast, underexplored mineral potential offers opportunities for significant discoveries, as seen in Cantex's high-grade silver-lead-zinc-germanium mineralization. However, exploration is inherently risky, with no guarantee of success. Additionally, the remote location and harsh climate may increase operational costs and logistical challenges. Despite these risks, the growing demand for critical minerals, driven by the transition to renewable energy and electric vehicles, creates a favorable market backdrop.

In conclusion, Cantex's private placement of $600,000 for critical mineral exploration on its North Rackla project in the Yukon significantly boosts its financial stability and growth prospects. The proceeds will fund qualified exploration expenditures, enabling Cantex to advance its high-grade silver-lead-zinc-germanium mineralization discovery. The private placement also strengthens Cantex's balance sheet and reduces its reliance on debt financing. As the demand for critical minerals continues to grow, Cantex's strategic location and experienced management position the company well to capitalize on this trend.