Scientific Metals Corp.
TSX VENTURE : SUG

Scientific Metals Corp.

May 25, 2016 12:03 ET

Scientific Metals Completes Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 25, 2016) - Scientific Metals Corp. ("STM" or the "Company") (TSX VENTURE:SUG) is pleased to announce that it has completed its previously announced non-brokered private placement of units (each, a "Unit"). STM initially announced that it proposed to issue up to 3,000,000 Units at a price of $0.10 per Unit for gross proceeds of up to $300,000. The private placement was oversubscribed and, as a result, with the prior approval of the TSX Venture Exchange, STM increased the size of the offering. In completing the private placement, STM issued a total of 3,850,000 Units at a price of $0.10 per Unit for gross proceeds of $385,000.

Each Unit is comprised of one common share in the capital of the Company (a "Common Share") and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one Common Share at a price of $0.15 per share at any time within 12 months of the date of issuance. All of the securities issued under this private placement are subject to a four month resale restriction. STM intends to use the net proceeds of this private placement for general working capital purposes and identifying new projects.

The Company also announces that it has discontinued its action in the Court of Queen's Bench of Alberta against XS Energy Ltd. in relation to STM's previously announced proposed acquisition of a working interest in, and to, a disposal well, surface lease and related assets located in Drayton Valley, Alberta.

Reader Advisory

This news release contains certain "forward-looking information" within the meaning of applicable securities law. Forward-looking information is frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate" and other similar words, or statements that certain events or conditions "may" or "will" occur. In particular, forward-looking information in this press release includes, but is not limited to, statements with respect to the proposed use of net proceeds from the private placement of Units. Although we believe that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking information.

Forward-looking information is based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. Some of the risks and other factors that could cause the results to differ materially from those expressed in the forward-looking information include, but are not limited to: general economic conditions in Canada and globally; industry conditions, including governmental regulation and environmental regulation; failure to obtain industry partner and other third party consents and approvals, if and when required; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; liabilities inherent in water disposal facility operations; competition for, among other things, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, processing and transportation problems; changes in tax laws and incentive programs; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors. Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking information contained in this news release is expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking information to conform such information to actual results or to changes in our expectations except as otherwise required by applicable securities legislation. Readers are cautioned not to place undue reliance on forward-looking information.

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.

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