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Chilean Metals Inc (3)
Symbol CMX
Shares Issued 14,161,976
Close 2020-06-30 C$ 0.10
Recent Sedar Documents

Chilean Metals receives MCTO from BCSC

2020-06-30 16:20 ET - News Release

Mr. Terry Lynch reports

CHILEAN METALS UPDATES MANAGEMENT CEASE TRADE ORDER AND CURRENT FINANCING

Further to the application for a management cease trade order (MCTO), which was granted by the B.C. Securities Commission on June 17, 2020, Chilean Metals Inc. is required to provide biweekly status reports in accordance with the alternative information guidelines in National Policy 12-203 (Management Cease Trade Orders), until such time as the company has completed and filed its audited annual financial statements and management's discussion and analysis in respect of the financial year ended Dec. 31, 2019.

The company reports that, since its June 15, 2020, default announcement in respect of the MCTO, there has not been any failure by the company to fulfill its intentions with respect to satisfying the provisions of the guidelines, and there have been no additional defaults subsequent to such announcement. At this time, the company does not expect that there will be a change to its anticipated timing of filing the annual filings on or before July 15, 2020.

The company intends to follow the provisions of the alternative information guidelines set out in NP 12-203, including the issuance of biweekly default status reports in the form of news releases, for as long as the company remains in default. The company confirms, as of the date of this news release, that there has been no material change in the information contained in the default announcement, and there is no other material information concerning the affairs of the company that has not been generally disclosed. In addition, the company hereby confirms that it has not received any financing from any related party at this time.

The company continues to work diligently to prepare the annual filings and will continue to comply with the guidelines until such deficiencies are remedied.

Chilean also wishes to update on its proposed financing. Upon completion of its audit, it intends to complete a previously announced best effort financing of up to $2.5-million. The proposed financing would be by way of issuance of up to 25 million units at 10 cents per unit. Each unit will be composed of one common share of the corporation and one-half of one common share purchase warrant, with each whole warrant exercisable into a common share of the corporation at an exercise price of 15 cents per warrant share for a period of 24 months from the date of closing of this offering. Warrants will be callable if, at any time after Oct. 31, 2020, the company's common shares have a closing price equal to or greater than 30 cents per common share for 10 consecutive trading days on the TSX Venture Exchange. The company shall thereafter be entitled to give notice to the holders of the Chilean Metals warrants, by news release, that such warrants will expire at 5 p.m. Vancouver time on that date which is 20 days after the date of such news release unless exercised before the expiry of that period. Participating brokers will be paid a commission of 8 per cent and provided a broker warrant entitling them to acquire 8 per cent of the amount invested in units for a period of 24 months.

Funds will be used to advance exploration and drilling on targets in Chile, to acquire additional projects currently in negotiation by the company, to repay outstanding bills of approximately $200,000, and to provide working capital. The best effort financing is open to existing shareholders of record as of June 26, 2020.

"Chilean believes postaudit that now is the time to complete the previously announced financing. Approximately $500,000 has been raised under that financing and advanced to the company. The additional capital will enable us to move forward with our drill program in Chile and to look at additional opportunities. We believe mining markets are turning and believe now is the time to engage," commented Chilean chief executive officer Terry Lynch.

This financing will be conducted in reliance upon available prospectus exemptions, including the existing shareholder exemption contained in Ontario Securities Commission Rule 45-501, B.C. Instrument 45-534, and various corresponding blanket orders and rules of participating jurisdictions.

The company has set a June 26 record date for the purpose of determining existing shareholders entitled to purchase securities pursuant to the existing shareholder exemption. Subscribers purchasing securities under the existing shareholder exemption will need to represent in writing that they meet certain requirements of the existing shareholder exemption, including that they were as of the record date, and continue to be as of the date of closing, for their subscription, a shareholder of the company. The aggregate acquisition cost to a subscriber under the existing shareholder exemption cannot exceed $15,000 unless that subscriber has obtained advice obtained from a registered investment dealer regarding the suitability of the investment. Any shareholder interested in the financing is asked to e-mail Terry Lynch at terry@chileanmetals.com.

About Chilean Metals Inc.

Chilean Metals is a Canadian junior exploration company, focusing on high-potential copper-gold prospects in Chile and Canada.

Chilean Metals is 100-per-cent owner of five properties comprising over 50,000 acres strategically located in the prolific IOCG (iron oxide copper-gold) belt of northern Chile. It also owns a 3-per-cent net smelter return royalty interest on any future production from the Copaquire copper-molybdenum deposit, recently sold to a subsidiary of Teck Resources Inc. Under the terms of the sale agreement, Teck has the right to acquire one-third of the 3-per-cent NSR for $3-million at any time.

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