Commerce Resources Corp. Announces Closing of Private Placement

Rhea-AI Summary

Commerce Resources Corp. announced the completion of a non-brokered private placement, raising $1,310,748 by issuing 8,192,175 units at $0.16 per unit. Each unit consists of one common share and one warrant, with warrants priced at $0.25 for three years. Proceeds will be used for the prefeasibility study for the Ashram REE/Fluorspar Deposit and for general working capital. The company aims to be a low-cost rare earth producer with the Ashram Deposit being one of the largest globally.

Positive

• Raised $1,310,748 for development projects.
• Funds allocated for prefeasibility study enhancing project viability.
• Ashram Deposit is one of the largest rare earth and fluorspar deposits globally.

Negative

• Warrants issued may dilute shareholder equity upon exercise.

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / December 19, 2022 / Commerce Resources Corp. (TSXV:CCE), (FSE:D7H0) (the "Company" or "Commerce") is pleased to announce that it has completed its previously announced non-brokered private placement (the "Offering"), as described in its News Release dated August 16, 2022, pursuant to which it has issued an aggregate of 8,192,175 units (each, a "Unit") at a price of $0.16 per Unit for gross proceeds of $1,310,748. Each Unit consists of one common share in the capital of the Company (each, a "Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant is exercisable into one additional Share at a price of $0.25 per Share for a period of three years from the closing date.

The Company paid cash finder's fees of $2,688 and issued 16,800 finder's warrants (each, a "Finder's Warrant") to certain finders in connection with the Offering. The Finder's Warrants have the same terms and conditions as the Warrants.

The net proceeds from the sale of the Offering will be used towards continued work on the prefeasibility study for the Company's Ashram REE/ Fluorspar Deposit, the production of commercially marketable samples of Rare Earth concentrates as requested by industry majors and for general working capital purposes.

The securities issued under the Offering, and the shares that may be issuable on exercise of the Warrants and the Finder's Warrants, are subject to a statutory hold period expiring four months and one day from the date of closing.

None of the securities sold in connection with the Offering will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news 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.

About Commerce Resources Corp.

Commerce Resources Corp. is a junior mineral resource company focused on the development of the Ashram Rare Earth and Fluorspar Deposit located in Quebec, Canada. The Company is positioning to be one of the lowest cost rare earth producers globally, with a specific focus on being a long-term supplier of mixed rare earth carbonate and/or NdPr oxide to the global market. The Ashram Deposit is characterized by simple rare earth (monazite, bastnaesite, xenotime) and gangue (carbonates) mineralogy, a large tonnage resource at favourable grade, and has demonstrated the production of high-grade (>45% REO) mineral concentrates at high recovery (>70%) in line with active global producers. In addition to being one of the largest rare earth deposits globally, Ashram is also one of the largest fluorspar deposits globally and has the potential to be a long-term supplier to the met-spar and acid-spar markets.

For more information, please visit the corporate website at www.commerceresources.com or email info@commerceresources.com.

On Behalf of the Board of Directors
COMMERCE RESOURCES CORP.

"Chris Grove"
Chris Grove
President and Director
Tel: 604.484.2700
Email: cgrove@commerceresources.com
Web: http://www.commerceresources.com

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

SOURCE: Commerce Resources Corp.

View source version on accesswire.com:
https://www.accesswire.com/732499/Commerce-Resources-Corp-Announces-Closing-of-Private-Placement

FAQ

What is the purpose of the private placement by CMRZF?

The proceeds from the private placement will fund the prefeasibility study for the Ashram REE/Fluorspar Deposit and cover general working capital.

How much money did CMRZF raise in the private placement?

Commerce Resources Corp. raised $1,310,748 in the private placement.

What are the terms of the warrants issued in the CMRZF private placement?

Each warrant is exercisable at $0.25 per share for three years.

What is the significance of the Ashram Deposit for CMRZF?

The Ashram Deposit is one of the largest rare earth and fluorspar deposits, positioning CMRZF to be a leading low-cost producer.