Canadian Metals Closes First Tranche of a Private Placement
April 6, 2016 (Source) — Canadian Metals Inc. (the “Corporation”) (CSE:CME) is pleased to announce that it has closed a first tranche of $ 510,000 (the “First Tranche”) of a non-brokered private placement (the “Private Placement”) for total gross proceeds of up to $600,000 (the “Private Placement”). The Private Placement consists of up to 4,000,000 units (the “Units”) at a price of $0.15 per Unit, each Unit being comprised of one common share and one common share purchase warrant, entitling the holder to acquire one common share of the Company for a period of eighteen (18) months at an exercise price of $0.25 per share.
The net proceeds from the Private Placement will be used to fund working capital.
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As part of this First Tranche, 9248-7792 Québec Inc., a company controlled by Mr. Stéphane Leblanc, CEO of the Corporation, subscribed to 166,666 Units, Vega Capital Inc., a company wholly owned by Mr. Michel Gagnon, a director of the Corporation, subscribed to 33,333 Units, and Mr. Robert Boisjoli, CFO of the Corporation, subscribed to 110,003 Units . The participation of each of 9248-7792 Québec Inc.,Vega Capital Inc. and Mr. Boisjoli (collectively, the “Related Parties“) in the Private Placement is considered a “related party transaction” under Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Corporation is relying on Sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, for exemptions from the formal valuation and minority approval requirements under MI 61-101, as neither the fair market value of the Shares issued to the Related Parties nor the amount of debt settled pursuant thereto exceeded 25% of the Corporation’s market capitalization.
All Shares issued pursuant to this First Tranche will be subject to a hold period of four months and one day from their date of issuance and as such are restricted from trading until August 7, 2016.
About Canadian Metals
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 eventually become a North American silicon metal producer.
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
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