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Canadian Metals announces Closing of Second and Final Tranche of Brokered Offering

C.CME

Canada NewsWire

CSE: CME

MONTRÉAL, March 21, 2018 /CNW/ - Canadian Metals Inc. (the ''Company'') (CSE : CME) is pleased to announce that, further to its news releases dated December 7 and 28, 2017, it has closed a second and final tranche ("Final Tranche") of its previously announced brokered private placement offering (the "Offering"). The Final Tranche closing consisted of the issuance of a total of 400 unsecured subordinated convertible debentures (each a "Debenture") at a price of $1,000 per Debenture, for aggregate gross proceeds of $400,000. Leede Jones Gable Inc., as the lead agent and sole bookrunner, acted for and on behalf of the Company in connection with the Offering.

Each Debenture has a maturity date of December 31, 2022 (the "Maturity Date") and will bear interest from the date of closing at 10.00% per annum, payable semi-annually on June 30 and December 31 of each year commencing on June 30, 2018.  Each Convertible Debenture is convertible, at the option of the holder, into common shares (each a "Share") of the Company at any time prior to the close of business on the earlier of: (i) the business day immediately preceding the Maturity Date, and (ii) if  subject to redemption in the event of a change of control, the business day immediately preceding the payment date, at a conversion price of $0.20 per Share (the "Conversion Price"), subject to adjustment in certain events and to forced conversion by the Company. On or after March 31, 2018, provided that the average closing price of the Shares on the Canadian Stock Exchange during the 20 consecutive trading days exceeds $0.40, or given that the Company engages an equity financing at a price that exceeds $0.40, the Company shall have the right to convert into Shares at a conversion price equal to a 10% discount to the equity financing established price, or the average closing price whichever is applicable.

The net proceeds of the Final tranche will be used by the Company to fund exploration and development of the Company's mineral concessions in Quebec, and for general corporate and working capital purposes. Pursuant to the Final Tranche, the agents received a cash commission of $20,000 and 290,910 agent warrants, each of which is exercisable to acquire one Share at a price of $0.15 per Share until March 20, 2020.

All securities issued in connection with the Final Tranche are subject to a hold period expiring on July 21, 2018 in accordance with applicable Canadian securities laws. The Offering remains subject to the Canadian Securities Exchange final approval.

About Canadian Metals

Canadian Metals is a diversified resource company focused on creating shareholder value through the development of large-scale industrial mineral portfolios in specific commodities and jurisdictions that will fuel the new energy economy. The Company is uniquely positioned to pursue this strategy and controls significant interest in Silicon and Zinc/Cobalt assets throughout North America.

Our main activities are directed towards the development of  Langis project, a high-purity silica deposit located in the province of Quebec with fully permitted with the BEX and the certificate of authorization from the MDDELCC. The Company is rapidly positioning itself as a supplier of high purity silica and silicon alloy in North America. Silicon based materials can be formulated to provide a broad range of products from more durable, faster building materials with smarter electronic devices, solar panels and more efficient wind turbines. We expect to become a global supplier for a number of industries and applications but without limitation: glass, ceramics, lighting, oil and gas, paint, plastic and rubber. We also want to become an integrated supplier to metallurgical industries including foundries, and participate in a wide range of civil, industrial, environmental and related applications. These target markets are an integral part of the lives of millions of people every day.

Cautionary Statements Regarding Forward Looking Information

Certain statements included herein may constitute "forward-looking statements". All statements included in this press release that address future events, conditions or results, including in connection with the pre-feasibility study, its financing, the hybrid flex project, job creation, the investments to complete the project and the potential performance, production and environmental footprint of the silicon plant, are forward-looking statements. These forward-looking statements can be identified by the use of words such as "may", "must", "plan", "believe", "expect", "estimate", "think", "continue", "should", "will", "could", "intend", "anticipate" or "future" or the negative forms thereof or similar variations. These forward-looking statements are based on certain assumptions and analyses made by management in light of their experiences and their perception of historical trends, current conditions and expected future developments, as well as other factors they believe are appropriate in the circumstances. These statements are subject to risks, uncertainties and assumptions, including those mentioned in the Corporation's continuous disclosure documents, which can be found under its profile on SEDAR (www.sedar.com). Many of such risks and uncertainties are outside the control of the Corporation and could cause actual results to differ materially from those expressed or implied by such forward-looking statements. In making such forward-looking statements, management has relied upon a number of material factors and assumptions, on the basis of currently available information, for which there is no insurance that such information will prove accurate. All forward-looking statements are expressly qualified in their entirety by the cautionary statements set forth above. The Corporation is under no obligation, and expressly 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 law.

Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE Canadian Metals Inc.

View original content: http://www.newswire.ca/en/releases/archive/March2018/21/c2208.html



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