Canadian Metals Inc. (CSE:CME) (CSE:CME.CN) (CNSX:CME) announces the closing of the non-brokered private placement, in the amount of $1,275,500. Under this offering, the Corporation issued 17,006,666 units at the priced at $0.075 each. Each unit is comprised of one common share and one common share purchase warrant having an exercise price of $0.15 and a term of 2 years from the closing date. The proceeds will be used to complete the prefeasibility study for the Langis property, exploration for the others properties and for general working capital.
Five directors of the Corporation have participated in the private placement in the aggregate amount of $165,000: Mr. Stephane Leblanc, through his holding company, has purchased 500,000 Units for proceeds of $37,500, Mr. Luigi Nardella, through his holding company, has purchased 350,000 units for proceeds of $26,250, Mr. Hubert Vallée, through his holding company, has purchased 500,000 Units for proceeds of $37,500, Mr. Victor Cantore has subscribed for 500,000 units for proceeds of $37,500, and Mr. Michel Gagnon, through his holding company, has purchased 200,000 Units for proceeds of $15,000 and in his own name, 150,000 Units for proceeds of $11,250. Pursuant to Regulation 61-101 Respecting protection of minority security holders in special transactions, each of these investments constitute a “related party transaction” however, the Corporation is exempt from obtaining minority shareholder approval and a formal valuation as the fair market value of the consideration for the transaction, as it involves interested parties, does not exceed 25% of the Corporation’s market capitalization. A material change report has not been filed on the 21 days prior to the closing as the amounts of their investment had not been determined within such delay.
In addition, Mr. Robert Wares acquired 6,700,000 Units (approximately 8.27% of the issued and outstanding Shares on a non-diluted basis and 15.17% on a partially diluted basis assuming the exercise of Warrants) for total consideration of $502,500. Prior to the Offering, Mr. Wares beneficially owned 100,000 Shares. The Units were acquired by Mr. Wares for investment purposes. Mr. Wares has a long-term view of the investment and may acquire additional securities of the Company either on the open market or through private acquisitions or sell securities of the Company either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of Mr. Wares’s early warning report will appear on the Company’s profile on SEDAR.
The private placement remains subject to regulatory approval and all securities issued are subject to a 4 month hold period. In connection with the offering, a finder’s fee of $10,000 was paid and 134,000 finder warrants were issued to registered intermediaries. The finder warrants have an exercise price of $0.15 and a term of 2 years.
About Canadian Metals
Canadian Metals is focused on the development of its Langis project, a high-purity silica deposit located in the province of Quebec. 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.
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