CMC Metals reports over-subscribed financing

CMC Metals Ltd. [CMB-TSXV, CMCXF-OTCQB, ZM5P-Frankfurt] said Thursday it has raised $1.4 million from an over-subscribed private placement financing. Subject to TSX Venture Exchange approval, the company will issue 4.97 million flow-through units at 18 cent per share and 3.2 million non-flow- through units at 16 cents each.

Net proceeds from the sale of the flow-through shares will be used to fund current exploration efforts at both the Bridal Veil and Rodney Pond properties in Central Newfoundland and ongoing exploration efforts on its silver-lead-zinc properties in Yukon/British Columbia in the Rancheria Silver District.

Each flow through unit consists of one flow-through common share and one half of one common share purchase warrant. Each whole warrant can be used to purchase an additional common share for 20 cents for 24 months from the date of issue.

Each non flow-through unit consists of one common share of the company and one half of a common share purchase warrant. Each full warrant can be used to purchase an additional common share for 20 cents for 24 months from the date of issue.

The financing was effected with three insiders subscribing for a total of $54,000 or 300,000 flow-through units, making that portion of the financing a related party transaction.

“We are particularly pleased that in this challenging market that we managed to oversubscribe the placement but keeping it at a level appropriate to enable us to implement our current objectives and goals,’’ said CMC President and CEO Kevin Brewer.

CMC Metals is a growth-stage exploration company with a focus on high grade polymetallic deposits in the Yukon, British Columbia, Newfoundland and Labrador. Its silver-lead-zinc prospects in the Rancheria Silver District include the Silver Hart Deposit and Blue Haven claims (the Silver Hart Project) in the Yukon, and Rancheria South, Amy and Silverknife claims in British Columbia.

Its polymetallic projects with potential for copper-silver gold and other metals include Logjam (Yukon), Bridal Veil and Terra Nova, both of which are located in Newfoundland.

On October 12, 2022, CMC shares closed at 14.5 cents and currently trade in a 52-week range of 25 cents and $0.08.

Silver Hart is the company’s flagship property and consists of high-grade silver-lead-zinc veins. The property has been subjected to extensive advanced stage exploration, project planning and environmental studies.

In an August 31, 2022 press release, the company said current drilling had intersected carbonate replacement (CRD) style mineralization in a 500 by 900-metre area at Silver Hart. The ongoing drilling program was focused on identifying CRD style mineralization with the objective to identifying higher tonnage.

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