Commerce Resources Corp. Announces Flow-through Non-brokered Private Placement

Rhea-AI Summary

Commerce Resources Corp. (OTCQX:CMRZF) announced a non-brokered private placement of up to 10,700,000 common shares at $0.28 each, aiming to raise up to $3,000,000. The funds will support the development of the company's Ashram REE Deposit in Quebec. Insiders may participate, and finders' fees may apply. The offering needs TSX Venture Exchange approval and will have a statutory hold period. The Ashram Deposit is one of the largest rare earth and fluorspar deposits globally, positioning Commerce as a potential low-cost producer in the sector.

Positive

• Aiming to raise up to $3,000,000 through a private placement.
• Funds will advance the Ashram REE Deposit, enhancing future production capabilities.
• The Ashram Deposit is one of the largest rare earth deposits globally, suggesting significant market potential.

Negative

• Completion of the offering is contingent on TSX Venture Exchange approval, creating uncertainty.
• Insider participation may raise concerns about potential conflicts of interest.

VANCOUVER, BC / ACCESSWIRE / December 15, 2021 / Commerce Resources Corp. (TSXV:CCE)(OTCQX:CMRZF)(FSE:D7H0) (the "Company" or "Commerce") is pleased to announce a non-brokered private placement consisting of the issuance of up to 10,700,000 common shares (each, a "Share") issued on a "flow-through" basis pursuant to the Income Tax Act (Canada) and the Taxation Act (Quebec) at a price of $0.28 per Share for gross proceeds of up to $3,000,000 (the "Offering"). Insiders may participate in the Offering.

The aggregate gross proceeds from the sale of the Offering will be used to advance the developments of the Company's Ashram REE Deposit in Quebec.

Finders' fees may be payable in connection with the Offering in accordance with the policies of the TSX Venture Exchange (the "Exchange").

All securities issued in connection with the Offering will be subject to a statutory hold period expiring four months and one day after closing of the Offering. Completion of the Offering is subject to the approval of the Exchange. Any participation by insiders in the Offering will constitute a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") but is expected to be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101.

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: https://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.

Cautionary Statement Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the proposed Offering, the expectations of management regarding the use of proceeds of the Offering, closing conditions for the Offering, the expiry of hold periods for securities distributed pursuant to the Offering, and Exchange approval of the proposed Offering. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that: the Company may not complete the Offering on terms favorable to the Company or at all; the Exchange may not approve the Offering; the proceeds of the Offering may not be used as stated in this news release; the funds raised from the sale of the Units may not be renounced in favour of the Unit holders; the Company may be unable to satisfy all of the conditions to the Closing; and those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE: Commerce Resources Corp.

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FAQ

What is the purpose of Commerce Resources Corp.'s private placement announced on December 15, 2021?

The private placement aims to raise up to $3,000,000 to advance the development of the Ashram REE Deposit in Quebec.

How many shares is Commerce Resources Corp. issuing in the private placement?

Commerce Resources Corp. is issuing up to 10,700,000 common shares.

What price per share is Commerce Resources Corp. offering in the private placement?

The shares are offered at a price of $0.28 each.

What are the implications of the private placement for Commerce Resources Corp.?

If successful, the private placement could enhance the company's financial position and support the development of a major resource in Quebec.

What is the ticker symbol for Commerce Resources Corp. on OTC markets?

The ticker symbol for Commerce Resources Corp. on OTC markets is CMRZF.