EDITOR: | June 29th, 2015

Canadian Metals Announces $ 1.5M Brokered Private Placement of Convertible Debentures

| June 29, 2015 | No Comments

Canadian-Metals-200x125June 29, 2015 (Source: Marketwired) — Canadian Metals Inc. (the “Corporation”) (CSE:CME) announces that it intends to complete a private placement of $1,000 principal amount of unsecured convertible debentures (the “Debentures”) for gross proceeds to the Corporation of up to $1.5 million (the “Private Placement”) and has retained Industrial Alliance Securities Inc. (the “Agent”) as the lead agent and sole bookrunner for the Private Placement.

The convertible debentures

Each debenture is convertible at the option of the holder into common shares of CME (the “Common Shares”) at any time after the issue date of the debenture and prior to the close of business on the last business day prior to the Maturity Date at a conversion price of CAD$0.20 per Common Share, being at a rate of, 5,000 Common Shares per CAD$1,000 principal amount of debentures.

The convertible debentures mature three years from the closing date and bear interest at a rate of 10% per annum, payable in equal semi-annual installments on June 30 and December 31st, commencing December 31st, 2015. At the option of the Corporation, interest shall be payable in cash or in shares for the first year. For year 2 and 3, interest shall be payable in cash only. If the payment is made in share, it will be based on a price equal to 85% of the average closing price of the Common Shares of CME for the period of 20 consecutive trading days ending five trading days before the payment date.

The proceeds of this Private Placement of Debenture will be used to complete a Preliminary Economic Assessment (PEA) on the Langis project and for working capital purposes.

The Agent will receive 8.5% cash commission and Broker Warrants (the “Broker Warrants”) equal to 5% of the Debentures issued pursuant to the Offering divided by $0.20. Each Broker Warrant shall entitle the holder thereof to acquire a Common Share at a price of $0.20 for a period of 24 months from the closing date.

The closing date of the offering is expected to be on or about July 15, 2015. The offering is subject to several conditions, including regulatory approvals including that of the CSE, Canadian Securities Exchange

For more information on the offering or in order to obtain a subscription form, please contact your financial adviser or Mathieu Seguin at Industrial Alliance Securities Inc. (“IAS”) mseguin@iagto.ca

About Canadian Metals Inc.:

Canadian Metals Inc. is focused exclusively on the development of its Langis Project, a high-purity silica deposit located in the province of Quebec. The Company is rapidly positioning itself to become a future producer of ferrosilicon in North America

For almost a decade, the quartz in Langis quarry was exported in Europe to produce Ferrosilicon. Canadian Metals has builted rapidly an international management team with local talent to establish and transform in Quebec the resource from Langis quarry in St-Vianey in high grade Ferrosilicon. With this project; Canadian metals wants to establish new standards in connection of Quebec government economic policy and development of Quebec Plan Nord. With the goal to create around a hundred highly qualified direct jobs and approximately 300 indirect jobs, Canadian Metals strongly believe that Province of Quebec has all the infrastructure including skill labor, rail, port and affordable green electricity to realize this industrial mineral project.

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


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