Canadian Metals Announces Closing of $2.4 Million Private Placement

Executive Summary

• Canadian Metals Inc. completed a non‑brokered private placement raising approximately $2.4 million in gross proceeds.
• Issued 9,230,770 Units at $0.13 each and 8,571,427 flow‑through (FT) Units at $0.14 each; each unit includes common shares and half a warrant to purchase additional shares at $0.20 for 30 months.
• Proceeds will be used to fund exploration on the company’s five Bathurst Mining Camp properties, with FT proceeds earmarked for eligible Canadian flow‑through exploration expenses.

Key Details

• Units sold: 9,230,770 Units @ $0.13 per Unit → $1,199,999.99 gross.
• FT Units sold: 8,571,427 FT Units @ $0.14 per FT Unit → $1,200,000‑00 gross.
• Total gross proceeds: $2,399,999.88 (approximately $2.4 M).
• Unit composition: 1 common share + ½ of a common‑share purchase warrant (full warrant = right to buy one common share at $0.20).
• FT Unit composition: 1 flow‑through common share + ½ of a FT‑unit warrant (same exercise price and term as above).
• Warrant terms: Exercise price $0.20 per common share; exercisable for 30 months from closing date.
• Use of proceeds: Advance exploration programs on five Bathurst Mining Camp properties; FT proceeds specifically allocated to Canadian Exploration Expenses qualifying as flow‑through critical mineral mining expenditures under the Income Tax Act.
• Finder’s fee paid: $13,038.90 in cash.
• Related‑party transaction: Insiders Yves Rougerie and Maxime Lemieux subscribed for 242,857 FT Units; transaction exempt from MI 61‑101 valuation and minority‑shareholder approval requirements (consideration < 25 % of market cap).
• Holding period: All securities subject to a lock‑up of four months and one day from closing.

Notable Quotes

“The successful completion of this private placement provides us with the capital needed to accelerate our exploration agenda across the Bathurst Mining Camp, positioning Canadian Metals for future growth.” – Julien Davy, CEO

Materiality Assessment: Material – Positive (significant financing that materially enhances the company’s ability to fund its core exploration activities).