Chilean Metals Updates Management Seize Trade Order and Current Financing.
Chilean Metals Updates Management Seize Trade Order and Current Financing.
Toronto, ON. June 30, 2020. Chilean Metals Inc. (“Chilean Me t a l s , ” “ C M X ” o r t h e “ C o m p a n y ” ) (TSX.V:CMX,
SSE:CMX, MILA: CMX) Chilean Metals announces that further to its application for a Management Cease Trade
Order (“ MCTO”), which was granted by the British Columbia Securities Commis sion on June 17, 2020,
the Company is required to provide bi-weekly status reports in accordance with the alternative information
guidelines in National Policy 12-203 Management Cease Trade Orders (the “ Guidelines”), until such time as
the Company has completed and filed its audited annual financia l statements and management’s discussion
and analysis in respect of the financial year ended December 31, 2019 (the “Annual Filings”).
The Company reports that, since its June 15, 2020 default announcement in respect of the MCTO (the “Default
Announcement”), there has not been any failure by the Company to fulfill it s intentions with respect to
satisfying the provisions of the Guidelines, and there have bee n no additional defaults subsequent to such
announcement. At this time, the Company does not expect that there will be a change to its anticipated timing
of filing the Annual Filings on or before July 15,2020.
The Company intends to follow the provisions of the Alternative Information Guidelines set out in NP 12-203,
including the issuance of bi-weekly default status reports in t he form of news releases, for as long as the
Company remains in default. The Company confirms as of the date of this news release that there has been no
m a t e r i a l c h a n g e i n t h e i n f o r m a t i o n c o n t a i n e d i n t h e D e f a u l t A n no u n c e m e n t , a n d t h e r e i s n o o t h e r m a t e r i a l
information concerning the affairs of the Company that has not been generally disclosed. In addition, the
Company hereby confirms that it has not received any financing from any related party at this time.
The Company continues to work diligently to prepare the Annual Filings, and will continue to comply with the
Guidelines until such deficiencies are remedied.
Chilean also wishes to update on its proposed financing. Upon c ompletion of audit it intends to complete a
previously announced best efforts financing of up to $2.50 mill ion dollars. The proposed financing would be
by way of issuance of up to 25,000,000 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 warran t (a “Warrant”),
with each whole Warrant exercisable into a common share of the Corporation (a “Warr ant Share”) at an
exercise price of $0.15 per Warrant Share for a period of 24 mo nths from date of closing of this offering.
Warrants will be callable If at any time after October 31, 2020, the Company’s common sha res 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.
F u n d s w i l l b e u s e d t o a d v a n c e e x p l o r a t i o n a n d d r i l l i n g o n t a r gets in Chile, to acquire additional projects
currently in negotiation by the company and to repay outstandin g bills of approximately $200,000 and to
provide working capital. The best efforts financing is open to existing shareholders of record as of June 26 th
2020.
“Chilean believes post audit tha t now is the time to complete t he 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 i n 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.
T h i s f i n a n c i n g w i l l b e c o n d u c t e d i n r e l i a n c e u p o n a v a i l a b l e p r ospectus 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 June 26th 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 wr iting 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 Co m p a n y . T h e a g g r e g a t e a c q u i s i t i o n c o s t t o a
subscriber under the Existing Shareholder Exemption cannot exce ed $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].
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
f u t u r e p r o d u c t i o n f r o m t h e C o p a q u i r e C u - M o d e p o s i t , r e c e n t l y s ol d t o a s u b s i d i a r y o f T e c k R e s o u r c e s I n c .
(“Teck”). Under the terms of the sale agreement, Teck has the r ight to acquire one third of the 3% NSR for $3
million dollars at any time. The Copaquire property borders Te ck’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", "wou ld", "may", "could" or "should " occur. Forward-looking statements in this
document include statements regarding current and future explor ation programs, activities and results.
Although CMX believes the expectations expressed in such forwar d-looking statements are based on
reasonable assumptions, such statements are not guarantees of f uture 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 mar ket 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.