CMC Metals Oversubscribes Private Placement
CMC Metals has successfully oversubscribed its private placement, raising gross proceeds of $162,400, pending TSX Venture Exchange approval. The offering comprised 1,000,000 flow-through units (FT) at $0.04 and 3,497,143 non-flow-through units (NFT) at $0.035 each. Each FT unit includes one common share and a half-warrant, while each NFT unit includes one common share and a full warrant. Both warrants are exercisable at $0.07 for 24 months. The financing involved an insider subscribing for 1,000,000 FT units, categorized as a related party transaction under MI 61-101. The funds from FT units will support exploration at Silverknife, Amy, and Silver Hart Properties, with NFT unit proceeds allocated to general working capital.
- Raised gross proceeds of $162,400, exceeding initial expectations.
- Issued 1,000,000 FT units at $0.04 and 3,497,143 NFT units at $0.035.
- FT and NFT units include warrants exercisable at $0.07 for 24 months, providing potential for future capital.
- Funds from FT units will support exploration at key properties, enhancing growth potential.
- Proceeds from NFT units will be used for general working capital, aiding financial stability.
- The financing is subject to TSX Venture Exchange approval, introducing regulatory risk.
- A portion of the financing is a related party transaction, potentially raising governance concerns.
- All securities issued are subject to a four-month hold period, limiting immediate liquidity for investors.
- The small cash finders' fee ($157.50) implies minor additional costs.
- The reliance on exemptions from MI 61-101 formal valuation could be viewed as a lack of transparency.
VANCOUVER, BC / ACCESSWIRE / June 14, 2024 / CMC Metals Ltd. (TSXV:CMB)(FRA:ZM5P)(OTCQB:CMCXF) ("CMC" or the "Company") has oversubscribed its private placement announced April 29, 2024 by raising gross proceeds of
Each FT unit consists of one flow-through common share of the company and one half of one common share purchase warrant, with each full warrant exercisable to purchase an additional common share of the company for
Each NFT unit consists of one common share of the company of the company and one common share purchase warrant, with each full warrant exercisable to purchase an additional common share of the company for
Subject to exchange approval, cash finders' fees in the amount of
The financing was realized with one insider, subscribing for a total of 1,000,000 FT units, which portion of the financing is a related party transaction as such term is defined under Multilateral Instrument 61-101, Protection of Minority Securityholders in Special Transactions. The company is relying on exemptions from the formal valuation requirement of MI-61-101 under sections 5.5(a) and 5.5(b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than 25 per cent of the company's market capitalization.
All securities issued pursuant to the financing will be subject to a four-month hold.
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, 2024, 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 FT Units will be used to fund the Company's exploration program at its Silverknife, Amy and Silver Hart Properties in the Rancheria Silver District, (Yukon/British Columbia), potentially limited activities at Logjam (Yukon) and Bridal Veil (Newfoundland and Labrador) and the net proceeds from the sale of NFT Units will be used for general working capital.
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 in the Rancheria Silver District include the Silver Hart Deposit and Blue Heaven claims (Yukon), Amy and Silverknife claims (British Columbia). Our polymetallic projects with potential for copper-silver-gold and other metals include Bridal Veil, Terra Nova and Rodney Pond (central Newfoundland) and Logjam (Yukon).
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: (+52) 669 198 8503
kbrewer80@hotmail.com
Suite 1000-409 Granville St., Vancouver, BC, V6C 1T2
To be added to CMC's news distribution list, please send an email to info@cmcmetals.ca or contact Mr. Kevin Brewer directly.
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.
View the original press release on accesswire.com
FAQ
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