VANCOUVER, Feb. 7, 2020 /CNW/ - Comstock Metals Ltd.
(TSX-V: CSL) ("CSL" or the "Company") today
announced a proposed 5 to 1 share consolidation and a proposed
non-brokered private placement of up to 3,000,000 units (the
"Units") priced, on a post-consolidated basis, at $0.10 per Unit for gross proceeds of up to
$300,000 (the "Offering").
Private placement
The Units to be issued under the proposed Offering will consist
of one common share of the Company and one common share purchase
warrant (each whole warrant, a "Warrant"). The Warrants will be
exercisable for a period of 36 months from closing at a
post-consolidated exercise price of $0.12 for the first 12 months following closing
and a post-consolidated exercise price of $0.15 for the final 24 months of their
term. Certain related parties of the Company may purchase
Units under the Offering.
Share Consolidation
The Board of Directors of CSL believes that further equity
financing is required in order for the Company to finance its
current working capital requirements and for future business
purposes. Given the current price of CSL's common shares a
consolidation of such shares is required under TSX Venture Exchange
policies. The board of directors believes that a
consolidation on the basis of 5 old shares of CSL for 1 new share
of CSL will achieve such objectives.
The consolidation will be effective upon receipt of all the
customary regulatory approvals. A further press release will be
issued once such approvals are provided and the effective date of
the consolidation is known.
About Comstock Metals Ltd.
Comstock Metals Ltd. is a diversified mineral exploration
company advancing its wholly owned projects located in North America and holds several equity
positions in companies with large mineral resources.
- 100% owned Preview SW Gold Project in Saskatchewan (43-101 Resource Stage)
- 100% earn in option on the Rawhide Cobalt-Silver Project in
Ontario
- Joint Venture and equity investment with E3 Metals Corp.
(TSX-V: ETMC), a petro-lithium
company developing lithium extraction technology in Alberta. (43-101 Resource Stage)
- Equity investment in White Gold Corp. (TSX-V: WGO) developing
its portfolio of properties
located in the White Gold District of the Yukon (43-101 Resource Stage)
Cautionary Note Regarding Forward Looking Information
This news release includes forward-looking information and
statements, which may include, but are not limited to, information
and statements regarding or inferring the future business,
operations, financial performance, prospects, and other plans,
intentions, expectations, estimates, and beliefs of the Company.
Forward-looking information and statements involve and are subject
to assumptions and known and unknown risks, uncertainties, and
other factors which may cause actual events, results, performance,
or achievements of the Company to be materially different from
future events, results, performance, and achievements expressed or
implied by forward-looking information and statements herein. The
forward-looking statements in this press release relate to the
proposed financing and share consolidation. There is no
certainty that the financing or consolidation will be completed on
the proposed terms or at all. Although the Company believes that
any forward-looking information and statements herein are
reasonable, in light of the use of assumptions and the significant
risks and uncertainties inherent in such information and
statements, there can be no assurance that any such forward-looking
information and statements will prove to be accurate, and
accordingly readers are advised to rely on their own evaluation of
such risks and uncertainties and should not place undue reliance
upon such forward-looking information and statements. Any
forward-looking information and statements herein are made as of
the date hereof, and except as required by applicable laws, the
Company assumes no obligation and disclaims any intention to update
or revise any forward-looking information and statements herein or
to update the reasons that actual events or results could or do
differ from those projected in any forward looking information and
statements herein, whether as a result of new information, future
events or results, or otherwise, except as required by applicable
laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this Release.
SOURCE Comstock Metals Ltd.