Cornish Metals Announces Early Warrant Exercise Incentive Program

VANCOUVER, British Columbia, Oct. 01, 2020 (GLOBE NEWSWIRE) -- Cornish Metals Inc. (TSX-V: CUSN) (“Cornish Metals” or the “Company”) is pleased to announce that the Company will make an application to the TSX Venture Exchange (the “Exchange”) for approval of the implementation of a proposed early warrant exercise incentive program (the “Incentive Program”) intended to encourage the early exercise of up to 23,525,000 outstanding whole common share purchase warrants (the “Eligible Warrants”) of the Company held by warrant-holders.

The Eligible Warrants were originally issued by the Company as part of units of the Company issued pursuant to the Company’s private placement financing completed on February 3, 2020. Each whole Eligible Warrant is currently exercisable to acquire one common share of the Company at a price of $0.07 per share. All Eligible Warrants will expire on February 3, 2023.

In order to encourage the early exercise of such Eligible Warrants, the Company will be seeking approval of the Exchange to an amendment to the terms of the Eligible Warrants to enable the holders to receive an Incentive Warrant (as defined and described below) for each whole Eligible Warrant exercised on or prior to 4:00 p.m. (PST) on October 30, 2020 (the “New Warrant Expiry Date”) at the price of $0.07 per Eligible Warrant.

To be eligible for the Incentive Program, the holder of the Eligible Warrants must deliver the following documents to the Company on or prior to 4:00 p.m. (PST) on the New Warrant Expiry Date:

1. a duly completed and executed Subscription Form, in the form attached as Schedule “A” to the certificate representing the Eligible Warrants;
2. the original certificate representing the Warrants being exercised; 
3. the applicable aggregate exercise price payable to the Company by way of certified cheque, money order, bank draft, or wire transfer in lawful money of Canada; and
   
4. a duly completed and executed accredited investor certificate, in such form as satisfactory to the Company, or otherwise the Company must be satisfied that the distribution of Incentive Warrants (as defined below) to such holder would be exempt from prospectus requirements under applicable securities laws. 

Further, in accordance with applicable requirements of the Exchange, related parties (as such term is defined under applicable securities laws) of the Company will be restricted in their ability to participate in the Incentive Program such that the aggregate of all Eligible Warrants to be exercised by related parties of the Company pursuant to the Incentive Program will not exceed 10% of all Eligible Warrants exercised pursuant to the program.