pcNewsWire – Toronto – May 25, 2017 – Chilean Metals Inc. (TSX-V/SSE/MILA: CMX; OTCQB: CMETF) intends to complete a private placement of 10,000,000 unit at $0.15 per unit for gross proceeds of $1,500,000. The Company will close on approximately $1,000,000 in current subscriptions and expects balance to be completed shortly.
Each unit will comprise of one share and one half of one share purchase warrant. One purchase warrant will enable holder to acquire one share of common stock at $0.20 at anytime until June 1 2019 subject to companies ability to accelerate the warrants should stock trade above $0.30 for a prescribed period of time.
All securities issued under the private placement will be subject to a four-month hold period in accordance with applicable securities laws. 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.
