Toronto, ON / TheNewswire / May 25th 2017 - Chilean Metals Inc. ("Chilean Metals," "CMX" or the "Company") (TSX.V:CMX, OTCQB: CMETF, SSE:CMX, MILA: CMX).
Chilean Metals announces today that it intends to complete a private placement of $1,500,000 through the issuance of 10,000,000 units. Each unit will cost $.15 and will comprise of one share and one half of one share purchase warrant. One purchase warrant and $.20 will enable holder to acquire another share of common stock at anytime until June 1 2019 subject to companies ability to accelerate the warrants should stock trade above $.30 for a prescribed period of time. The Company will close on approximately $1,000,000 in current subscriptions and expects balance to be completed shortly. All securities issued under the private placement will be subject to a four-month hold period in accordance with applicable securities laws. The issue is non-brokered however participating brokers will be paid a fee of 8% and have an ability to acquire an additional 8% of units sold for a period of one year from date of issuance. An overallotment of $500,000 has been reserved.
Patrick Cruickshank Chilean CEO commented "Completion of this placement will enable us to continue exploration on our Zulema project. The first phase of drilling is near completion and we have identified IOCG style mineralization in drill holes. After consulting with our Technical Advisor, Minotaur Exploration Ltd. (Australia), we believe the program will benefit from additional geophysical work including close spaced gravity, deep penetrating Induced Polarization and possibly magnetic surveying. After this work, we are planning an additional 2000-3000 metre drill program this fall."
In addition to the completion of drilling in Zulema, the company is readying a summer drill program on its Bass River project in Nova Scotia with JV partner Tejas Gold. "At Bass River, a ground Pulse Electro-Magnetic (PEM) survey will be completed over the Castlereagh VTEM target defined in a 2015 airborne survey conducted by Geotech Ltd. The survey results will be provided to Minotaur Exploration Ltd. who will model and prioritize the drill targets. A 2000 + meter drill program will follow. The targets are an extension of the mineralized system intersected in a 2015 drill program located southwest of the Castlereagh VTEM anomaly." commented Cruickshank. Details of Chileans Nova Scotia Exploration program will be announced in the coming weeks.
Chilean Metals will require regulatory approval to complete the private placement.
About Chilean Metals
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.
Chilean Metals Inc is the 100% owner of four Copper Gold exploration properties in Nova Scotia on the western flank of the Cobequid-Chedabucto Fault Zone (CCFZ); Fox River, Parrsboro, Lynn and Bass River respectively. Initial targeting and geophysics has been conducted on all properties, At Bass River North, airborne geophysics identified a major VTEM cluster on trend with the Pb/Zn/Ag mineralization exposed at surface and in drill holes to the southwest. Modeling of the airborne data by Minotaur (Australia) identified 3 priority targets recommended for ground based geophysics prior to drilling.
