CMC Announces Upsizing of Non-Brokered Private Placement for Gross Proceeds of up to C$3.1 Million

Rhea-AI Summary

CMC Metals Ltd. has announced an increase in its non-brokered private placement from C$2,120,000 to C$3,100,000 due to high investor demand. The placement involves flow-through units priced at C$0.17 and non-flow-through units at C$0.15, with total gross proceeds of up to C$3,100,000. Proceeds will fund exploration activities in the Rancheria Silver District and at the Silver Hart Project. The offering is set to close in mid-April 2022, pending regulatory approval.

Positive

• Increased offering size from C$2,120,000 to C$3,100,000 indicates strong investor demand.
• Funding will support exploration at key projects, including the Silver Hart Project.

Negative

• None.

VANCOUVER, BC / ACCESSWIRE / March 14, 2022 / CMC Metals Ltd. (TSX-V:CMB) (Frankfurt:ZM5P) (CMCXF:OTC PINKS) ("CMC" or the "Company") is pleased to announce that due to significant investor demand, the Company has increased the size of the Company's previously announced non-brokered private placement (the "Offering") from up to C$2,120,000 to up to C$3,100,000 subject to regulatory acceptance. Under the revised Offering, the Company will sell any combination of flow-through units of the Company (each, a "FT Unit") at a price of C$0.17 per FT Unit and non-flow-through units of the Company (each, a "Unit") at a price of C$0.15 per Unit for gross proceeds of up to C$3,100,000.

Each FT Unit will consist of one common share of the Company to be issued as a "flow-through share" within the meaning of the Income Tax Act (Canada) (each, a "FT Share") and one-half of one transferrable non-flow-through share purchase warrant (each full warrant, a "Warrant"). Each Unit will consist of one common share of the Company (each, a "Unit Share") and one-half of one Warrant. Each whole Warrant will entitle the holder thereof to acquire one non-flow-through common share of the Company (each, a "Warrant Share") at a price of C$0.20 per Warrant Share for a period of 24 months from the closing date of the Offering.

Proceeds from the sale of FT Shares to eligible investors in Canada will be used to incur "Canadian exploration expenses" and "flow through mining expenditures" as these terms are defined in the Income Tax Act (Canada). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Shares.

The net proceeds from the sale of Units will be used to fund the Company's exploration program at its silver-lead-zinc properties in the Rancheria Silver District, Yukon/British Columbia and its polymetallic copper-silver-lead properties in central Newfoundland, as well as a range of other exploration activities, as well as general corporate purposes. A major focus of the funding will be directed towards exploration drilling on the Company's flagship Silver Hart Project.

The Company may pay finders' fees comprised of cash and non-transferable warrants (the "Finder's Warrants") in connection with the Offering, subject to compliance with the policies of the TSX Venture Exchange. The terms of the Finder's Warrants will be the same as the Warrants distributed in the FT Units and the NFT Units. All securities issued and sold under the Offering will be subject to a hold period expiring four months and one day from their date of issuance. Closing of the Offering is scheduled for mid-April 2022 and is subject to customary closing conditions including, but not limited to, the negotiation and execution of subscription agreements and receipt of applicable regulatory approvals, including approval of the TSX Venture Exchange.

The securities being offered will not be registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or any applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. persons," as such term is defined in Regulation S promulgated under the U.S. Securities Act, absent registration or an exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Qualified Person

Qualified Person Kevin Brewer, a registered professional geoscientist, is the Company's President and CEO, and Qualified Person (as defined by National Instrument 43-101). He has given his approval of the technical information pertaining reported herein. The Company is committed to meeting the highest standards of integrity, transparency and consistency in reporting technical content, including geological reporting, geophysical investigations, environmental and baseline studies, engineering studies, metallurgical testing, assaying and all other technical data.

About CMC Metals Ltd.

CMC Metals Ltd. is a growth stage exploration company focused on opportunities for high grade polymetallic deposits in Yukon, British Columbia and Newfoundland. Our polymetallic silver-lead-zinc CRD prospects include the Silver Hart Deposit and Blue Heaven claims (the "Silver Hart Project") and Rancheria South, Amy and Silverknife claims (the "Rancheria South Project"). Our polymetallic projects with potential for copper-silver-gold and other metals include Logjam (Yukon), Bridal Veil, Terra Nova and Rodney Pond all of which are in Newfoundland.

On behalf of the Board:

"John Bossio"
John Bossio, Chairman
CMC METALS LTD.

For Further Information and Investor Inquiries:

Kevin Brewer, P. Geo., MBA, B.Sc.(Hons), Dip. Mine Eng.
President, CEO and Director
Tel: (604) 605-0166
kbrewer80@hotmail.com
Suite 615-800 Pender St.
Vancouver, BC
V6C 2V6

To be added to CMC's news distribution list, please send an email to info@cmcmetals.ca or contact Mr. Kevin Brewer at 604-605-0166.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

"This news release may contain certain statements that constitute "forward-looking information" within the meaning of applicable securities law, including without limitation, statements that address the timing and content of upcoming work programs, geological interpretations, receipt of property titles and exploitation activities and developments. In this release disclosure regarding the potential to undertake future exploration work comprise forward looking statements. Forward-looking statements address future events and conditions and are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management of the Company, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks, including the ability of the Company to raise the funds necessary to fund its projects, to carry out the work and, accordingly, may not occur as described herein or at all. Actual results may differ materially from those currently anticipated in such statements. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, the impact of the constantly evolving COVID-19 pandemic crisis and continued availability of capital and financing and general economic, market or business conditions. Readers are referred to the Company's filings with the Canadian securities regulators for information on these and other risk factors, available at www.sedar.com. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements. The forward-looking statements included in this news release are made as of the date hereof and the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation."

SOURCE: CMC Metals Ltd.

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FAQ

What is the updated size of CMC Metals Ltd.'s private placement?

The private placement has increased from C$2,120,000 to C$3,100,000.

What will the proceeds from the private placement be used for?

Proceeds will fund exploration activities in the Rancheria Silver District and the Silver Hart Project.

When is the closing date for the private placement?

The closing of the private placement is scheduled for mid-April 2022.

What are the terms of the flow-through units being offered?

The flow-through units are priced at C$0.17 each and consist of one flow-through share and one-half of one warrant.

What will the non-flow-through units consist of?

The non-flow-through units are priced at C$0.15 each and consist of one common share and one-half of one warrant.