Canadian Metals Announces Closing of $2.4 Million Private Placement

Each Unit is comprised of one common share in the capital of the Company and one-half of one common share purchase warrant. Each whole Warrant entitles the holder thereof to purchase one Common Share at a price of $0.20 for a period of 30 months from the closing date. Each FT Unit is comprised of one Common Share issued as a “flow-through” share and one-half of one common share purchase warrant. Each whole FT Unit Warrant entitles the holder thereof to purchase one Common Share at a price of $0.20 for a period of 30 months from the closing date.

The gross proceeds from the Private Placement will be used by the Company to advance its exploration programs on its five properties in the Bathurst Mining Camp, New Brunswick. The Company intends to use the gross proceeds from the sale of the FT Units to incur exploration expenses that are eligible “Canadian exploration expenses” that qualify as “flow-through critical mineral mining expenditures” as such terms are defined in the Income Tax Act (Canada).

The Corporation paid finder fee of $13,038.90 in cash.

Yves Rougerie and Maxime Lemieux insiders of the Company, subscribed for a total of 242,857 FT Units under the Private Placement, which constitutes a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions. The issuance of FT Units to the Insiders is exempt from the formal valuation requirements of MI 61-101 as the Company’s securities are not listed on any of the stock exchanges listed in section 5.5(b) of MI 61-101 and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration of the securities issued to the Insiders did not exceed 25% of the Company’s market capitalization.

All securities issued in respect of the Private Placement will be subject to a hold period of four (4) months and a day from closing of the Private Placement in accordance with securities laws.

About Canadian Metals Inc.

Canadian Metals Inc. (CSE: CME) is a diversified resource company focused on creating shareholder value through the development of large-scale mineral deposits in key commodities and safe jurisdictions. The Company currently holds over 250 km² of highly prospective land in New Brunswick, Canada. These projects are located within and adjacent to the Bathurst Mining Camp (BMC) and are 100%-owned. The properties cover a range of geological target types typical of the Appalachian Orogenic environment, including silver-lead-zinc VMS, structurally controlled gold, porphyry copper-gold-molybdenum, antimony-gold-arsenic associated with intrusions, and skarn-type lead-zinc-copper-silver mineralization.

On behalf of Canadian Metals Inc.

Julien Davy,
CEO

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