February 24, 2015
Increase and Closing of 12,500,000 Unit Private Placement @ $0.04 per Unit / Grant of Incentive Stock Option
Vancouver, B.C.: CMC Metals Ltd. (the "Company") wishes to announce that it has increased its originally announced 12,500,000 Unit private placement as announced pursuant to its January 22, 2015 press release, to 13,087,500 Units and closed this transaction having received TSX Venture Exchange approval.
The terms of the placement remained unchanged offered at $0.04 per Unit for aggregate gross proceeds of $523,500 for the total 13,087,500 Units. Each Unit consists of one common share and one transferable share purchase warrant with each one warrant exercisable for one additional common share of the Company at $0.05 per share for a two year period expiring February 24, 2015.
The funds derived from this placement will be used towards the Company's payables and ongoing operations in the US of approximately $300,000, which includes installation of the pond liner at the Bishop Mill, and payroll requirements at the Bishop Mill and Radcliff Property, with the remaining balance to be used towards Canadian payables and towards working capital. There is a finder's fee payable of $7,480 equal to 1.43% of the total proceeds raised from this placement, together with broker's warrants for 187,000 Warrant Shares issuable on the same terms and conditions as this placement.
The Company further wishes to announce that it has granted 1,000,000 common shares pursuant to incentive stock options under the Company's Rolling Stock Option Plan, which Plan received shareholder approval at its last Annual General Meeting held August 19, 2014. The options granted will be set for a two year period expiring February 24, 2017 at the exercise price of $0.05 per share. This transaction is subject to TSX Venture Exchange approval.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Jack Bal"
Jack Bal, CEO
CMC METALS LTD.
For further information on the Company, please contact Mr. Jack Bal, CEO, Telephone: 604-306-5285 [email protected].
Information in this news release may contain forward looking information. Statements containing forward looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations, or beliefs as to future events or results and are believed to be reasonable based on information currently available to the Company.
There can be no assurance that forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers should not place undue reliance on forward-looking information.
The forward-looking information contained in this news release is as of the date hereof and CMC Metals does not undertake any obligation to update publicly or to revise any of the included forward looking statements contained herein, except as required by applicable law. The forward-looking statements contained herein are expressly qualified by this cautionary statement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)