HMZ Metals Inc.

HMZ Metals Inc.

April 28, 2008 18:00 ET

HMZ Announces First Closing Under Private Placement

TORONTO, ONTARIO--(Marketwire - April 28, 2008) - HMZ Metals Inc. ("HMZ" or the "Company") (CNQ:HMZA) announced a first Closing of $130,000 under its non-brokered private placement of Convertible Debentures (the "Debentures"). The Company paid a finders fee equal to $4,000 and issued 100,000 warrants to purchase common shares in connection with the above and anticipates closing the balance of the $350,000 offering shortly.

The Debentures are non-interest bearing and are convertible into Units on a dollar for dollar basis. Each Unit is priced at $0.05 and consists of one common share and one-half common share purchase warrant. Each full warrant is exercisable at $0.10 for the first twelve months from Closing and at $0.20 for the second twelve months from Closing. A finder's fee consisting of a cash payment equal to 8% of the cash raised under the Debentures and that number of warrants to purchase common shares at $0.05 for a term of two years, that is equal to 10% of the number of Units issuable on conversion of the Debentures is payable as applicable. Conversion of the Debentures will occur subsequent to and therefore not be subject to a 5:1 share consolidation which share consolidation is subject to shareholder and regulatory approval. Proceeds from the Debentures will be used to fund working capital requirements.

Contact Information

  • HMZ Metals Inc.
    Kerry Smith
    (416) 214-3270 ext 222
    (416) 214-3276 (FAX)