CMC Metals increases, closes private placement

2015-02-24 14:53 ET - News Release

Mr. Jack Bal reports
INCREASE AND CLOSING OF 12,500,000 UNIT PRIVATE PLACEMENT @ $0.04 PER UNIT / GRANT OF INCENTIVE STOCK OPTION

CMC Metals Ltd. has increased its originally announced 12.5-million-unit private placement, as announced pursuant to its Jan. 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 four cents per unit for total 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 five cents per share for a two-year period expiring Feb. 24, 2015.

The funds derived from this placement will be used toward the company's payables and continuing operations in the United States 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 toward Canadian payables and toward working capital. There is a finder's fee payable of $7,480, equal to 1.43 per cent 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 one million 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 Aug. 19, 2014. The options granted will be set for a two-year period expiring Feb. 24, 2017, at the exercise price of five cents per share. This transaction is subject to TSX-V approval.
We seek Safe Harbor.