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Constantine Metal Resources appoints RCI Capital Group as financial advisor, closes loan agreement

CEO Garfield MacVeigh said a US$667,800 loan will provide funds to Constantine to maintain its 51% Palmer project interest into 2020

Constantine Metal Resources Ltd. - Constantine Metal Resources appoints RCI Capital Group as financial advisor, closes loan agreement
The mineral exploration company said the loan will minimize shareholder dilution in the current tough base metal markets

Constantine Metal Resources Ltd (CVE:CEM) (OTCMKTS:CNSNF) revealed Wednesday that it has closed its previously announced loan agreement with Inter World Investments (Canada) Ltd for an unsecured loan facility of US$667,800. 

In a statement, the Vancouver, British Columbia mineral exploration company also said it has signed a financial services agreement with RCI Capital Group Inc, an independent financial advisory firm which specializes in cross-border transactions. 

"We thank RCI Capital for facilitating the loan agreement with the lender and are very pleased to have closed the loan that will provide funds to Constantine to maintain its 51% Palmer project interest into 2020 and minimize shareholder dilution in the current tough base metal markets,” said Constantine Metal Resources CEO Garfield MacVeigh.

READ: Constantine Metal says Palmer project's potential enhanced with latest step-out hole

“At the same time, given RCI's focus on inbound Asian strategic capital ‎in the resource sector, we are especially pleased to be working with them and with our project partner, Dowa Metals & Mining Co. Ltd. to advance the Palmer Project,” he added.

Palmer, of which Constantine is the operator, is a high-grade volcanogenic massive sulphide-sulphate (VMS) project in a part of coastal southeast Alaska, with road access to the property and within 60 km of the year-round deep-sea port of Haines. Constantine holds 51% of the venture, while Dowa Metals & Mining Co Ltd has 49%.

In a statement, RCI Capital Group CEO John Park said the lender was pleased to have facilitated the loan and looked forward to continuing to work with Constantine, Dowa and other stakeholders to secure “the longer term financing required to advance the Palmer Project through the next phase of development."

Constantine has issued 2,701,683 warrants to the lender, with each bonus warrant exercisable to buy one common share of the company at a price of C$0.31 until October 10, 2024. The bonus warrants and underlying common shares are subject to a statutory hold period expiring four months from the date of issuance of the bonus warrants.

RCI Capital has also agreed to provide non-exclusive financial advisory services to ‎the company. It will help Constantine in negotiating and structuring equity financing, or other strategic transactions in connection with the Palmer project. ‎

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

Quick facts: Constantine Metal Resources Ltd.

Price: 0.19 CAD

TSX-V:CEM
Market: TSX-V
Market Cap: $9.25 m
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on 31/7/19

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