TORONTO, ONTARIO--(Marketwired - July 13, 2015) - Chilean Metals Inc. ("Chilean Metals," "CMX" or the "Company") (TSX VENTURE:CMX)(OTCQB:CMETF)(SSE:CMX ).
Chilean Metals has secured an additional $100,000 in financing to add to the previously completed $190,000 debenture financing, subject to TSX Venture Exchange approval. The terms were as follows: 14% interest annually in arrears at loan repayment, secured by the shares of our Chilean subsidiary that contains a 3% royalty CMX retained through sale of its Copaquire asset to a subsidiary of Teck Resources Inc. More details on the royalty can be found on CMX's website at http://chileanmetals.com/projects/copaquire-royalty/.
The Company can, should it so choose, place a combined debenture totalling $1,000,000 USD secured in this fashion. The loan is due Oct 31, 2016, or upon sale of all or part of the Teck Royalty. Finders fees of $3,600 were paid on this transaction. In addition CMX will provide the debenture holder 1,000,000 warrants entitling holder to exchange one warrant and $0.05 to acquire one share up to Oct 31 2016.
"The funds will be used for general working capital purposes. We expect to conclude additional financing in the short term that would provide the company with capital to drill our newly assembled Zulema project" commented Chilean Metals CEO Terry Lynch.
About Chilean Metals
Chilean Metals Inc. is 100% owner of five properties comprising over 50,000 acres strategically located in the prolific IOCG ("Iron oxide-copper-gold") belt of northern Chile. It also owns a 3% NSR royalty interest on any future production from the Copaquire Cu-Mo deposit, recently sold to a subsidiary of Teck Resources Inc. ("Teck"). Under the terms of the sale agreement, Teck has the right to acquire one third of the 3% NSR for $3 million dollars at any time. The Copaquire property borders Teck's producing Quebrada Blanca copper mine in Chile's First Region.
ON BEHALF OF THE BOARD OF DIRECTORS OF
Chilean Metals Inc.
Terry Lynch, CEO
The Qualified Person for Chilean Metals Inc., as defined by National Instrument 43-101, is Dr. Christopher Hodgson, P. Eng., Vice President, Exploration.
Forward-looking Statements: This news release may contain certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that CMX expects to occur, are forward looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding current and future exploration programs, activities and results. Although CMX believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration success, continued availability of capital and financing, inability to obtain required regulatory or governmental approvals and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward looking statements.
Neither the 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.
Contact Information:
Terry Lynch
CEO
terry@chileanmetals.com