CMC Metals Ltd. Initiates Shares for Debt Agreement to Fortify Balance Sheet

CMC Metals Ltd., operating in Vancouver, BC, has announced a strategic move to enhance its financial position by addressing $163,457.02 of its outstanding debt through the issuance of company shares. This decision has been designed to alleviate the company's debt burden while preserving its cash reserves.

The company has issued a total of 2,611,111 common shares to four non-arm's length creditors, and 1,021,267 common shares to three arm's length creditors, each at a deemed price of $0.045 per share. The action comes as a part of CMC’s broader effort to navigate through financial difficulties and leverage emerging market opportunities, especially in the silver sector.

All shares have been issued under conditions that include a four-month holding period, with the entire process subject to approval by the TSX Venture Exchange (TSXV). The initiative, engaging both officers and various creditors of the company, aims to not create new insiders or alter control of the company. Furthermore, due to the nature of insider involvement, it has been identified as a "related party transaction." However, exemptions from formal valuation and minority shareholder approval requirements have been applied, underlining the minor impact on market capitalization.

CMC’s President and CEO, Kevin Brewer, has expressed optimism, stating the company's readiness to capitalize on favorable market conditions following this strategic financial restructuring. Brewer highlighted significant cost reductions and expressed gratitude towards participating service and supply companies, emphasizing CMC's strengthened position for advancing its silver projects.