CMC Metals Oversubscribes Private Placement – Raises $1,412,660.02

VANCOUVER, BC / ACCESSWIRE / October 12, 2022 / - CMC Metals Ltd. (TSX-V:CMB)(Frankfurt:ZM5P)(CMCXF: OTCQB) ("CMC" or the "Company") has oversubscribed its private placement announced September 6^th 2022 by raising gross proceeds of $1,412,660.02, subject to TSX Venture Exchange approval. On receipt of the TSX Venture Exchange approval, the company will issue 4,975,889 flow-through (FT) units at $0.18 and 3,231,250 non-flow-through (NFT) units at $0.16

Each FT unit consists of one flow-through common share of the company and one half of one common share purchase warrant, with each full warrant exercisable to purchase an additional common share of the company for $0.20 for 24 months from the date of issue.

Each NFT unit consists of one common share of the company of the company and one half of common share purchase warrant, with each full warrant exercisable to purchase an additional common share of the company for $0.20 for 24 months from the date of issue.

Subject to exchange approval, cash finders' fees in the amount of $74.834 will be paid along with the issuance of 312,290 broker warrants.

The financing was effected with three insiders, subscribing for a total of $54,000 or 300,000 FT units, which portion of the financing is a related party transaction as such term is defined under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on exemptions from the formal valuation requirement of MI-61-101 under sections 5.5(a) and 5.5(b) of MI 61-101 in respect of the transaction as the fair market value of the transaction, insofar as it involves the interested party, is not more than 25 per cent of the company's market capitalization.

All securities issued pursuant to the financing will be subject to a four-month hold.

Mr. Kevin Brewer, President and CEO, notes "We are extremely pleased with the efforts of our team and the support we received from our core group of investors as well new investors who have participated in this financing. We are particularly pleased that in this challenging market that we managed to oversubscribe the placement but keeping it at a level appropriate to enable us to implement our current objectives and goals. Support was received from new institutional funds and that is critical to the future growth of our Company."