Sep. 15, 2010 (TheNewswire.ca) --
Vancouver, B.C.: CMC Metals Ltd. (OOTC:CMCXF) (TSXV:CMB) (the "Company") is pleased to announce it has signed an agreement with Sino Regal (Asia) Ltd. to represent the Company in Asia for marketing bulk samples from the Silver Hart Mine and concentrates that will be produced from the Bishop Mill facilities. Sino Regal (Asia) Ltd. has an extensive network with companies in Asia requiring precious and base metal ores and concentrates. A buyer for the Silver Hart Mine bulk sample announced in the August 12th, 2010 news release will be reported as soon as a signed agreement is in place.
Furthermore, the drill programs at the Silver Hart Mine and Wheelbarrow property in Atlin, B.C. have been completed. A total of 21 drill holes were completed at Silver Hart as infill drilling as recommended in the NI43-101 report. An additional 5 drill holes were completed at the Wheelbarrow Brenda showing. The drill program was unfortunately shortened due to equipment failures and weather conditions requiring the drill to be mobilized from the site. Assay results from the two programs will be reported once the Company receives the results.
The Company further wishes to announce that the flow-through private placement originally announced June 28, 2010, as amended by press release dated July 9, 2010, has been further amended and finalized so that a total of 3,900,000 Units will be issued, an increase of the original number of units of 3,000,000 at $0.20 per Unit, increased to 3,200,000 Units at $0.175 per Unit on July 9, 2010, to raise a total of $585,000. The Unit price has been amended to $0.15 with the warrant exercise price remaining at $0.20 per Warrant Share. The terms of the Warrants have been further amended so that they are flow-through on issuance and remain convertible on a 2:1 basis for a twelve month period. All other terms of this placement remain unchanged and is subject to regulatory approval.
Furthermore, the Company wishes to announce that it has closed its private placement at $0.15 per Unit as announced by press release dated July 9, 2010, raising gross proceeds of $150,000 and issuing a total of 1,000,000 common shares to its placees at $0.15 per share, and issuing Warrant Certificates for 1,000,000 Warrant Shares. The terms of the exercise of the Share Purchase Warrants are every one Warrant is exercisable into one common share at $0.20 per share expiring August 15, 2011, resulting in the further issuance of 1,000,000 common shares should all the Warrant Shares be exercised. All funds raised pursuant to this placement will be used for general working capital. Finders' fees were paid to arms-length parties to the Company by way of cash or the issuance of shares and warrants, equal to the percentage of funds raised by those parties. The value of the finder's fees paid was $2,100, representing approximately 1.4% of the total gross proceeds raised.
In compliance with NI 43-101, Don Wedman, P.Eng., President and Chief Executive Officer of the Company, is the Qualified Person who prepared or supervised the preparation of the technical information presented in this news release.
This news release was prepared on behalf of the Board of Directors, which accepts full responsibility for its contents.
On behalf of the Board:
"Donald W. Wedman"
Donald W. Wedman, P.Eng.
CMC METALS LTD.
For further information on the Company, please contact Mr. Gord Zelko, VP Business Relations at MineralStocks Consulting Services. 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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