Jan. 31, 2011 (TheNewswire.ca) --
Vancouver, B.C.: CMC Metals (OOTC:CMCXF) (TSXV:CMB) Ltd. (the "Company") is pleased to announce that it has completed it's previously announced private placement (see press releases dated December 17, 2010 and December 9, 2010) of up to 1,750,000 flow through units (the "FT Units") at a price of $0.40 per FT Unit for aggregate gross proceeds of up to $700,000 (the "Offering"). Each FT Unit consists of one common share in the capital of the Company which will be designated as a flow-through share pursuant to the Income Tax Act (Canada) and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to purchase one common share in the capital of the Company (a "Share") at a price of $0.45 per Share for a period of one year from the closing of the Offering, and thereafter at a price of $0.50 per Share for a period ending 24 months from the closing of the Offering.
The Company closed the second tranche of the Offering consisting of 500,000 FT Units for gross proceeds of $200,000 on December 24, 2010. Each Warrant issued entitles the holder to purchase one Share at a price of $0.45 per Share until December 24, 2011, and thereafter at a price of $0.50 per Share until December 24, 2012. The Company will renounce an amount equal to the gross proceeds derived from the sale of the FT Units to the purchasers thereof in accordance with the provisions of the Income Tax Act (Canada).
In connection with the closing of the second tranche, the Company paid certain finders (each a "Finder") a cash commission equal to 7% of the proceeds of the sale of FT Units by such Finder (being $10,220 in total).
All securities issued in the closing of the second tranche will be subject to a hold period which expires April 25, 2011. The proceeds of the Offering will be used for Canadian exploration purposes.
The Company further wishes to announce that D. Mark Gunderson, Q.C., of Fallis, Alberta, has joined the Company's board of directors. Mr. Gunderson brings to the board many years of legal and business experience and the Company is confident that Mr. Gunderson will prove to be a valuable asset. Director, Jacob Brouwer, has agreed to step down as a director giving way to Mr. Gunderson's appointment, however, the Company is pleased to announce that Mr. Brouwer will remain on the Company's board as an honorary director to continue to provide the Company with his valued input and remain an active part of the Company in this reduced role.
The Company further wishes to announce that it has received a deposit of US$230,000 from the proceeds of the sale of the initial bulk sample from the Silver Hart Property. The Company anticipates receiving the balance of the proceeds from the sale of the bulk sample in the next few weeks.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Michael C. Scholz"
Michael C. Scholz
CMC METALS LTD.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
FORWARD LOOKING STATEMENTS: This press release contains forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date such statements were made. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
For further information on the Company, please contact Mr. Gord Zelko, VP Business Relations at StoxNetwork Corp. Telephone: 250-495-7123, or Email: gz@mineralstocks.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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