By Market Wire, September 17, 2013, 08:30:00 AM EDT
MONTREAL, QUEBEC -- (Marketwired) -- 09/17/13 --
Canadian Metals (the "Company") (CNSX:CME) is pleased to announce the signature of an agreement to acquire 100% of the rights to the Langis silica deposit. The property is located in the regional country municipality of Matapedia, 30 km north of Amqui. The data compilation clearly demonstrates the deposit's production potential and the quality of the silica.
The Company also plans to conduct characterization studies to verify the data. "Our technical team is proud to be able to help start this project and speed up the characterization process required to validate the historic data. With the drilling we are planning to do over the next weeks, in addition to metallurgic tests, this historic work will provide an excellent database and additional confirmation for the production of an NI 43-101 technical report", explained Stéphane Leblanc, President and CEO of Canadian Metals Inc.
Under the terms of the agreement between the Company and the Seller, the Company will acquire a 100% interest in the Langis property in exchange for 2,500,000 warrants on signature, as well as 3.0% of the net smelter return (NSR) royalties and 7% of the net profit interest (NPI) royalties on the claims. Each warrant allows the Seller to acquire one class A share from the Buyer for a period of five years following the closing date, at a price equal to the market price of the share at market close on the day before the date the agreement was signed. The Company has the option to acquire 5% of the 7% NPI royalties. The transaction is subject to approval from the regulatory authorities.
The seller of the Langis silica deposit (the "Seller") is a corporation controlled by Mr. Leblanc. As such, the transaction constitutes an "operation with a related person" in the meaning of Regulation 61-101 respecting protection of minority security holders in special transactions (the "Regulation"). Mr. Leblanc renounced his interest as major shareholder and administrator of the Seller before the beginning of the negotiations between the Company and the Seller. All the negotiations were carried out between the Seller and independent administrators acting on behalf of the Company. The independent administrators also received the advice of independent lawyers and experts.
The Company's independent administrators determined that the fair market value of the Langis property was equal to the consideration paid and that the obligation to carry out a formal evaluation and obtain the approval of minor shareholders could be waived because neither the market value nor the consideration was above 25% of the Company's market capitalization (sections 5.5 (a) and 5.7 (a) of the Regulation).
Canadian Metals is a mining exploration and development corporation based in Montréal, Québec. The Corporation is focused on acquiring, exploring, and developing mining properties. Its flagship project, and still the priority, is the Massicotte property located in the Detour Gold Trend, in the province of Québec, Canada. Canadian Metals is also looking for new projects to complete its portfolio. For more information, please refer to the Corporation's website at www.canadianmetalsinc.com.
Neither the CNSX nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.
Canadian Metals Inc.
President and CEO
Canadian Metals Inc.
Vice President Business development
Source: Canadian Metals Inc.