Chilean Metals Updates Best Efforts Financing
Chilean Metals Updates Best Efforts Financing
Toronto, ON. June 1, 2020. Chilean Metals Inc. (“Chilean Metals,” “CMX” or the “Company”) (TSX.V:CMX,
SSE:CMX, MILA: CMX) intends to complete a previously announced best efforts financing of up to $2.00 million
dollars. The proposed financing would be by way of issuance of up to 20,000,000 units at $.10 per unit. Each
unit will be comprised of one common share of the Corporation (a “Common Share”) and one half of one
common share purchase warrant (a “Warrant”), with each whole Warrant exercisable into a common share of
the Corporation (a “Warrant Share”) at an exercise price of $0.15 per Warrant Share for a period of 24 months
from date of closing of this offering. Warrants will be callable If at any time after October 31, 2020, the
Company’s common shares have a closing price equal to or greater than $0.30 per common share for ten (10)
consecutive trading days on the TSX Venture Exchange, the Company shall thereafter be entitled to give notice
to the holders of the CMX Warrants, by news release, that such warrants will expire at 5:00 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% and provided a broker warrant entitling
them to acquire 8% 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 repay outstanding bills of
approximately $200,000 and to provide working capital. The best efforts financing is open to existing
shareholders of record as of May 25 th 2020.
“Chilean believes 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 CEO Terry Lynch.
This financing will be conducted in reliance upon available prospectus exemptions, including the existing
shareholder exemption (the “ Existing Shareholder Exemption ”) contained in OSC Rule 45-501, BCI 45-534
and various corresponding blanket orders and rules of participating jurisdictions.
The Company has set a May 25th 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 email Terry Lynch at [email protected].
In addition to the best efforts financing Chilean Metals Inc. (" Chilean" or the " Company") today announces
that it intends to rely on the temporary blanket relief for market participants published on March 23, 2020 (the
“Blanket Order”) by the Canadian Securities Administrators (the “CSA”) which provides for a 45-day extension
to file its interim financial statements and interim quarterly Management’s Discussion and Analysis (“MD&A”)
for the quarter ended March 31, 2020 (the “Q1 2020 Filings”).
The Company is relying on the temporary exemption granted pursuant to Ontario Instrument 51-502
Temporary Exemption from Certain Corporate Finance Requirements with respect to the requirement to file
its Q1 2020 Filings as per sections 4.4 and 5.1(2) of National Instrument 51-102 Continuous Disclosure
Obligations and section 5.1 of National Instrument 52-109 Certification of Disclosure in Issuers' Annual and
Interim Filings. The Company expects to file its Q1 2020 Filings no later than July 15, 2020.
In addition, further to the Company’s press release issued April 29, 2020 the Company wishes to provide
updated guidance with respect to the filing of its December 31, 2019 audited financial statements. As
announced previously, the Company has elected to utilize the blanket order extension which extended the
Company’s filing deadline to June 15, 2020. The Company experienced delays due to the local and federal
lockdowns in the various jurisdictions of operations of the Company.
Further to this exemption, the Company has implemented a blackout policy that monitors and restricts trading
in the issuer's securities by directors, officers and other insiders of the issuer until the 2019 Annual Documents
and Q1 2020 Filings are filed. Other than as previously disclosed and published on SEDAR by the Company,
there have been no material business developments since the date of the interim consolidated financial
statements that were filed November 28, 2019
About Chilean Metals,
www.chileanmetals.com/
Chilean Metals Inc. is a Canadian Junior Exploration Company focusing on high potential Copper Gold
prospects in Chile & Canada.
Chilean Metals Inc is 100% 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% NSR royalty interest
on any future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck
Resources Inc. (“Teck”). Under the terms of the sale agreement, Teck has the right to acquire one third of
the 3% NSR for $3 million dollars at any time. The Copaquire property borders Teck’s producing
Quebrada Blanca copper mine in Chile’s First Region.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Chilean Metals Inc.
“Terry Lynch”
Terry Lynch, CEO
Contact: [email protected]
Forward-looking Statements: This news release may contain certain statements that may be deemed
"forward-looking statements". All statements 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.