Canadian Metals provides update on Baie-Comeau project
Canadian Metals Inc. CSE: CME
CANADIAN METALS PROVIDES BAIE-COMEAU SILICON PROJECT UPDATE
September 19, 2019 Montréal, Québec. - Canadian Metals Inc. (“CME” or the
“Company”) (CSE: CME) has completed its review of the industrial feasibility study for
its Baie-Comeau silicon project.
SMS Metix was responsible for the design and costing of a single submerged arc
furnace with a production capacity of 22,000 mt per year and all other process
equipment. Mesar provided preliminary engineering for buildings, structure and balance
of plant. The s tudy reveals a higher capital expen diture than anticipated but more
importantly has given CME sign ificant data and a potential plan to pursue the project
towards an economical success.
Significant Findings
• Capital expenditure resulting from the study totalled $380 million , where initial
estimates were in the range of $150 to $200 million. A high-level optimization
exercise occurred during the summer and revealed a potential capital
expenditure reduction of approximately $130 million.
• A portion of the identified savings is from the elimination of duplication given the
studies were done separately.
• In order to further reduce the capital requirement and to benefit from economies
of scale, t he technology used for the furnace needs to be standard and proven
otherwise a pilot plant is required to mitigate project and operational risks.
• Production volume of 22,000 mt per year generated by a one -furnace project
cannot support capital expenditures above $200 million.
Path Forward
With those initial results, the Company intends to pursue the study through the following
steps:
• Optimization review and modification of the scope of the study would include up
to 3 furnaces without eliminating the possibility of testing other types of furnaces
through a pilot plant but only once the project has reached economic success.
• Modify the permitting mandate to include production levels up to three times the
initial volume of 22,000 mt per year which would drive the project schedule and
allow us to be ready to initiate financing and construction, once the silicon market
improves.
• The letter of intent with the city of Baie-Comeau to reserve a plot of land in the
industrial sector is being modified to extend CME’s option to purchase the land
by an additional 2 years, now expiring on December 31, 2021.
• Hydro-Québec has completed all pertinent study to build a 12km – 161kV multi-
user power line from the Haute -Rive substation to the plant location. Detailed
review and negotiations are underway.
• Rail access from the port of Baie -Comeau to the plant location is currently under
study.
• The search for a strategic partner is a continuous activity and a key driver in the
successful execution of this project and operation of the silicon plant.
In order to execute its path forward, CME estimates that it will cost approximately $1
million in mandates for permitting, engineering, and a project integrator role.
While current s ilicon market conditions are unfavorable, the longer -term outlook is still
very positive and showing growth in this sector.
About Canadian Metals Inc.
Canadian Metals is a diversified resource company focused on creating shareholder
value through the development of large -scale mineral deposits in safe jurisdictions. The
Company is focusing on its new acquisition of the Iron deposits as well as advancing its
special development in the Silicon market.
For more information, please contact:
Gerald Panneton
Chairman & CEO
Email: [email protected]
Stéphane Leblanc
Vice President Corporate Development
Email: : [email protected]
1-418-717-2553
Website: www.canadianmetalsinc.com
Cautionary Statements Regarding Forward-Looking Information
Certain statements in this news release constitute "forward -looking" statements. These statements relate to
future events or our future performance. Forward -looking statements include the completion of the
Consolidation and the statement that the Consolidation will permit CME to reduced future dilution from the
ability to raise additional capital at a higher price per share . All such statements involve substantial known
and unknown risks, uncertainties and other factors which may cause the actual results, p erformance or
achievements to vary from those expressed or implied by such forward -looking statements. Forward-looking
statements reflect current expectations regarding future events and operating performance and speak only
as of the date of this news rele ase. Forward-looking statements involve significant risks and uncertainties,
they should not be read as guarantees of future performance or results, and they will not necessarily be
accurate indications of whether or not such results will be achieved. A nu mber of factors could cause actual
results to differ materially from the results discussed in the forward -looking statements, including, but not
limited to, that the closing will not occur. Although the forward -looking statements contained in this news
release are based upon what management of the Company believes are reasonable assumptions on the
date of this news release, the Company cannot assure investors that actual results will be consistent with
these forward -looking statements. These forward -looking statement are subject to certain risks and
uncertainties and other risks detailed from time-to-time in CME's ongoing filings with the securities regulatory
authorities, which filings can be found at www.sedar.com. These forward-looking statements are made as of
the date of this news release and CME disclaims any intent or obligation to update any forward -looking
statement, whether as a result of new information, future events or otherwise, unle ss required by applicable
securities laws.
Neither the CSE nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of
this release.