CMC Metals Ltd V.CMB

Wow, talk about insanity

[Magnum2]

Where do they plan on getting these funds:

Pursuant to the terms of the agreement, to exercise the option and maintain the option in good standing, CMC Metals shall make a series of cash payments, issue common shares in the capital of CMC Metals and incur certain exploration expenditures on the property as follows:

 

1. CMC Metals shall pay to Sailfish cash payments totalling $3.5-million (U.S.) in accordance with the following schedule:
   1. $500,000 (U.S.) on or before March 31, 2024;
   2. $500,000 (U.S.) on or before March 31, 2025;
   3. $500,000 (U.S.) on or before March 31, 2026;
   4. $2-million (U.S.) on or before March 31, 2027.
2. CMC Metals shall issue CMC Metals shares in accordance with the following schedule:
   1. One million CMC Metals shares upon acceptance by the TSX Venture Exchange of the agreement;
   2. $700,000 in CMC Metals shares on or before March 31, 2024, calculated based on the greater of: (i) five cents per CMC Metals share; and (ii) the 10-day volume-weighted average price of the CMC Metals shares immediately prior to issuance;
   3. $500,000 in CMC Metals shares on or before March 31, 2025, calculated based on the greater of: (i) five cents per CMC Metals share; and (ii) the 10-day volume-weighted average price of the CMC Metals shares immediately prior to issuance.
3. CMC Metals shall incur and pay for total exploration expenditures of $5-million in respect of the property (including 10,000 metres of new drilling) in accordance with the following schedule:
   1. $1-million on or before March 31, 2025;
   2. $1.5-million on or before March 31, 2026;
   3. $2.5-million on or before March 31, 2027.

[ggrellette]

Wow is right. This is a very huge bold move with very little money to back this type of move. However the market likes it since the bids increased substantially. Furthermore, March is not far away. This tells me a financing is in the cards here, unless they have a sugar daddy.