Chilean Metals Closes $2.2 Million Financing
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Chilean Metals Closes $2.2 Million Financing
Toronto, ON. May 4, 202 1. Chilean Metals Inc. (“Chilean Metals,” “CMX” or the “Company”) (TSX.V:CMX, ,
OTCBB – CMETF, SSE:CMX, MILA: CMX) has closed a non-brokered private placement of $2,200,000 dollars,
with $900,000 being done via issuance of 3,600,000 common shares at $0.25 and $1,200,000 in Flow -through
Shares issued at $0.40 per share comprising of 3,000,000 shares. The proceeds from the flow-through shares
will be used to incur Canadian exploration expenditures that qualify as flow -through mining expenditures (as
such terms are defined in the Income Tax Act (Canada)).
The Company has paid brokers fees and broker warrants in conjunction with the transaction. Total brokerage
fees amounted to $128,400. In addition, the Company issued 216,000 broker warrants exercisable at $0.25 at
anytime over the next 18 months and also 1 80,000 broker warrants exercisable at $0.40 at anytime over the
next 18 months. All shares and broker warrants issued under the private placement are subject to a hold
period of four months and one day from the closing date.
“The additional capital will enable us to commence our initial drill program at our recently acquired option on
the NISK Nickel project in James Bay Quebec. Our objective would be to provide an updated 43 -101 in late Q3
or early Q4. We are excited about NISK potential to provide a hi gh-grade Nickel Copper Cobalt Palladium
project that would be well received in a market where Battery Metal pricing looks better and better! ”
commented Chilean CEO Terry Lynch.
Funds will also be used in the Compan y’s proposed Plan of Arrangement. As prev iously announced Chilean
Metals will be changing its name to, Power Nickel Inc . and will focus its efforts on the exploration and
development of the Nisk project. On February 1, 2021 Chilean Metals completed the acquisition of its option to
acquire up to 80% of the Nisk project from Critical Elements Lithium Corporation (TSX-V:CRE, OTCQX: CRECF,
FSE:F12). These estimates at the Nisk project are of a historic resource and the Company’s geologic team has
not completed sufficient work to confirm a NI 43-101 compliant resource. Therefore, the estimates cannot, and
should not be relied upon.
Table -1: Historical Resource Estimate figures for respective confidence categories at the NISK -1
deposit, After RSW Inc 2009: Resource Estimate for the NISK -1 Deposit, Lac Levac Property,
Nemiscau, Québec.
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The information regarding the NISK -1 deposit was derived from the technical report titled “Resource
Estimate for the NISK -1 Deposit, Lac Levac Property, Nemiscau, Québec” dated December 2009. The key
assumptions, parameters and methods used to prepare the mineral resource estimates described above
are set out in the technical report.
The NISK property comprises a large land position (20 kilometres of strike length) with numerous high -grade
intercepts outside the current resource area. Chilean is focused on expanding its high-grade nickel-copper PGE
mineralization and historical resource, identifying additional high-grade mineralization at other untested areas
on the property, and developing a process to potentially produce nickel sulphates responsibly for batteries for
the electric vehicles industry.
In addition, through the Plan of Arrangement it is expected that the Companies Golden Ivan Project, in the heart
of BC Golden Triangle , will become a stand -alone Public Company as will the Companies Chilean subs idiary
Chilean Metals Ltd. The proposed plan of arrangement is subject to shareholder and regulatory approvals and
receipt of certain tax, fairness and legal opinions and is expected to be concluded in H2 of 2021. The Company
also has granted 250,000 options to a consultant.
About Chilean Metals,
www.chileanmetals.com/
Chilean Metals is a Canadian junior exploration company focusing on high -potential copper, gold and battery
metal 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 iron-oxide-copper-gold belt of northern Chile. It also owns a 3-per-cent NSR royalty interest on any
future production from t he 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. The Copaquire property borders Tec k's producing Quebrada Blanca copper
mine in Chile's first region.
Chilean Metals has as of January 13, 2021 completed the acquisition of its option to acquire the Golden Ivan
project in the heart of the Golden Triangle. The Golden Triangle has reported mi neral resources (past
production and current resources) in total of 67 million ounces of gold, 569 million ounces of silver and 27
billion pounds of copper. This property hosts two known mineral showings (gold ore and magee), and a portion
of the past-producing Silverado mine, which was reportedly exploited between 1921 and 1939. These mineral
showings are described to be Polymetallic veins that contain quantities of silver, lead, zinc, plus/minus gold,
and plus/minus copper.
On February 1, 2021 Chilean Met als completed the acquisition of its option to acquire up to 80% of the Nisk
project.
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The NISK property comprises a large land position (20 kilometres of strike length) with numerous high -grade
intercepts outside the current resource area. Chilean is focu sed on expanding its current high -grade nickel -
copper PGE mineralization historical resource to be prepared in accordance with NI 43 -101, identifying
additional high -grade mineralization and developing a process to potentially produce nickel sulphates
responsibly for batteries for the electric vehicles industry.
Qualified Person
Qualified Person Luke van der Meer, P.Geo. (Licence # 37848), Independent Geological Consultant, Qualified
Person under NI 43-101, has reviewed and approved the technical content of this release.
ON BEHALF OF THE BOARD OF DIRECTORS
Chilean Metals Inc.
Terry Lynch, CEO
647-448-8044
For further information, readers are encouraged to contact:
CHILEAN METALS INC.
The Canadian Venture Building
82 Richmond St East, Suite 202
Toronto, ON
Terry Lynch & CEO [email protected]
Contact: [email protected]
Forward-looking Statements: This news release may contain certain statements that may be deemed "forward -looking
statements". All sta tements in this release, other than statements of historical fact, that address events or developments
that CMX expects to occur, are forward looking statements. Forward -looking statements are statements that are not
historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes",
"intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may",
"could" or "should" occur. Forward -looking statements in this document include statements regarding current and future
exploration programs, activities and results. Although CMX believes the expectations expressed in such forward -looking
statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual
results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ
materially from those in forward-looking statements include market prices, exploitation and exploration success, continued
availability of capital and financing, inability to obtain required regulatory or governmental approvals and general
economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future
performance and actual results or developments may differ materially from those projected in the forward -looking
statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.