Cmx Granted Partial Revocation of Cease Trade Order and Announces Closing of Related Financing
CMX GOLD & SILVER CORP.
CSE:CXC OTC:CXXMF
CMX GRANTED PARTIAL REVOCATION OF
CEASE TRADE ORDER AND ANNOUNCES CLOSING OF
RELATED FINANCING
June 30, 2021
CALGARY, ALBERTA – CMX Gold & Silver Corp. (CSE:CXC; OTC:CXXMF ) (“CMX” or the
“Company”) on June 15, 2021 was granted a partial revocation of the cease trade order issued by
Alberta Securities Commission (ASC) for the purpose of completing a private placement to raise
capital to complete 2019 and 2020 audits of the Company’s financial statements and to make all
requisite regulatory filings. The ASC and the Ontario Securities Commission (OSC) issued cease
trade orders (CTO) for the Company’s failure to file audited financial statements for the fiscal year
ended December 31, 2019 and related continuous disclosure documents . The CTO was issued
June 22, 2020. The Company has not filed financial statements and the related documentation for
the first three quarters of 2020, for the year ended December 31, 2 020, and for the first quarter of
2021.
The purpose of the private placement is to enable CMX to raise sufficient funds to prepare and file
all outstanding continuous disclosure documentation, pay fees for an application for a full revocation
of the CTO, and settle certain debts. CMX has closed the private placement of 7,000,000 units at
an issue price of $0.05 per unit, with each unit comprised of one common share and one common
share purchase warrant exercisable for two years at $0.10 per share . The cash proceeds of the
private placem ent were $200,000 for 4,000,000 units and $150,000 of debt was set tled for
3,000,000 units. All securities issued for the private placement are subject to a hold period under
applicable Canadian securities laws of four months and one day from closing.
Related persons have subscribed for units in the private placement. Two directors, a company
controlled by a director, a company controlled by the spouse of a senior officer, a newly appointed
senior officer, and an insider owning greater than ten percent of CMX shares outstanding have
collectively subscribed for 4,700,000 units. Therefore, the transaction constitutes a related party
transaction under the provisions of Multilateral Instrument 61 -101 Protection of Minority Security
Holders in Special Transactions (MI 61-101). The Company has relied on the exemptions from the
formal evaluation and minor ity shareholder approval requirements of MI 61 -101 contained in
Sections 5.5(b) and 5.7 (1)(a) of MI 61 -101 for participation of the related parties in the private
placement, because CMX is not listed on certain specified markets, and neither the fair market value
of, nor the fair market value of the consideration for, the transaction, insofar as it involves the related
parties, exceeded 25% of CMX’s market capitalization. A material change report was not filed 21
days prior to the date of the material change, as the details of the transaction had not been confirmed
at that time and no person will be prejudiced by such shorter period.
Looking back over the past 16 months, CMX was adversely impacted by the fallout from the Covid-
19 pandemic. Pursuant to a letter of intent with Interfield Software Solutions (Interfield), a reverse
takeover (RTO) was well-advanced when the process was halted in March 2020 as a result of Covid-
19 and global lockdowns. A key part of the transaction was a spinout of CMX’s mining assets to a
new corporation. Ultimately, Interfield was unable to move forward with its business plan and
confirmed in September 2020 that it was not in a position to close the transaction.
Since last year, prices for metals have been increasing and CMX’s management wants to ensure
that the Company’s shareholders have exposure to the new positive commodity cycle. The potential
of the Company’s 100%-owned Clayton silver property, located in central Idaho, USA, remains intact
and provides the opportunity for CMX’s shareholders to benefit from successful exploration activities
in a positive environment for precious metals. Closing of the private placement provides sufficient
capital for CMX’s auditor, MNP LLP to complete the audits, which will permit the Company to be
able to bring its regulatory filings current and apply to the ASC and OSC for a full revocation of the
CTO.
Prior to last year, management began working closely with a US-based strategic private investor on
a uniquely structured financing. Delays related to the Covid-19 pandemic meant that progress was
held up in 2020 and to date in 2021. However, the Company anticipates being in a position to move
forward with the financing later this year, subject to receiving a full revocation of the CTO from the
securities commissions.
Due to other business involvements, Randal Squires has tendered his resignation as CFO of the
Company. Mr. Squires held the position for over 10 years and has provided immense support to
management. CMX thanks Mr. Squires for his service. The Company announces that Glen R. Alston
has been appointed as CFO of the Company, effective immediately. Mr. Alston has been CMX’s
Corporate Development Consultant since 2015. He has more than 30 years’ business experience
with junior mining companies , including matter s related to preparation and filing of financial
statements. He was instrumental in bringing the Clayton Silver Mine property acquisition to CMX.
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy
of this news release.
About CMX Gold & Silver Corp. (CSE:CXC)
CMX Gold & Silver Corp. is a junior mining company engaged in the acquisition, exploration and
development of gold/silver and base metals properties. CMX's major asset is the 100% -owned
Clayton Silver Property located in the mining-friendly State of Idaho, U.S.A. The property comprises
approximately 276 ha (684 acres) in Custer County in south -central Idaho, including the former
Clayton silver-lead-zinc mine, which has 6,000 meters of underground workings and development
on eight levels.
For further information contact: Jan M. Alston, President & C.E.O. at (403) 457-2697 or at
[email protected]; or visit the Company’s Website: www.cmxgoldandsilver.com
WARNING: the Company relies upon litigation protection for "forward looking" statements. The information in this
release may contain forward-looking information under applicable secur ities laws. This forward-looking information is
subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially
from those implied by the forward-looking information. Factors that may cause actual results to vary materially include,
but are not limited to, inaccurate assumptions concerning the operations of the Company, changes to securities regulation
requirements, other changes in laws or regulations, unanticipated risks of the COVID -19 pandemic crisi s, changes in
general economic conditions or conditions in the financial markets and the inability to raise additional financing. Readers
are cautioned not to place undue reliance on this forward -looking information. The Company does not assume the
obligation to revise or update this forward-looking information after the date of this release or to revise such information
to reflect the occurrence of future unanticipated events, except as may be required under applicable securities laws.