Cmc metals ltd. faces criticism over shares for debt issuance
- CMC Metals Ltd. has settled over $133,000 in outstanding debt through share issuance.
- The company issued shares to both non-arm's length and arm's length creditors at a price of $0.045.
- This settlement is crucial for the company's future funding and operational stability in the mining sector.
On December 13, 2024, CMC Metals Ltd., based in Vancouver, British Columbia, announced the settlement of outstanding debt amounting to $133,457.02 through the issuance of common shares. This action follows a news release from the company dated April 12, 2024, and the settlement received approval from the TSX Venture Exchange. In total, CMC issued 1,944,445 common shares to four non-arm's length creditors and an additional 1,021,267 common shares to three arm's length creditors, reflecting a deemed price of $0.045 per share. The company is employing exemptions from the formal valuation and minority shareholder approval requirements outlined in MI-61-101, as the fair market value of common shares issued to insiders does not exceed 25% of the company's market capitalization. CMC Metals holds various projects, including their flagship Silverknife project adjacent to Coeur Mining's Silvertip deposit, known for being a high-grade underground CRD-vein deposit. Furthermore, the CMC portfolio includes multiple other polymetallic projects such as the Bridal Veil in Newfoundland, an orogenic gold target, and the Logjam project in Yukon, which is noted for its potential silver-gold and porphyry mineralization. This debt settlement will assist the company in financing ongoing operations and exploring new opportunities in the mining sector. Kevin Brewer, the President, CEO, and Director of CMC Metals, emphasized the importance of these developments for the company’s future. While the market landscape presents uncertainties and risks, the management believes that these measures are essential for sustaining the company's growth and operational stability. Investors are urged to consider the inherent risks associated with forward-looking statements, including financing viability and market conditions, as outlined in the company’s filings with Canadian securities regulators.