CMC Metals Announces Private Placement for Gross Proceeds Of Up To $700,000

12/09/2010 [ACCESSWIRE]

VANCOUVER, BRITISH COLUMBIA – December 9, 2010 (TSX.V: CMB) CMC Metals Ltd. (“CMC Metals” or the “Company”) is pleased to announce that it will proceed with a private placement of up to 1,750,000 units (the “Units”) at a price of $0.40 per Unit for gross proceeds of up to $700,000 (the “Offering”). Each Unit will consist of one common share in the capital of the Company which will be designated as a flow-through common share pursuant to the Income Tax Act (Canada)(a “FT Share”) and one-half of one common share purchase warrant (a “Warrant”). Each whole Warrant will entitle the holder thereof 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 12 months 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 will renounce an amount equal to the gross proceeds derived from the sale of the Units to the purchasers thereof in accordance with the provisions of the Income Tax Act (Canada).

The Company may pay a finder’s fee on the Offering within the maximum amount permitted by the policies of the TSX Venture Exchange.

Closing of the Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including the TSX Venture Exchange. All securities issued in connection with the Offering will be subject to a statutory hold period of four months plus a day from the date of issuance in accordance with applicable securities legislation. The proceeds from the Offering will be used to for Canadian exploration purposes.

On behalf of the Board: