Commerce Resources Corp. Closes Private Placement of 16,000,000 Units and Raises Gross Proceeds of $2,016,000

Rhea-AI Summary

Commerce Resources Corp. (TSXv:CCE)(FSE:D7H0) has successfully closed a non-brokered private placement, raising gross proceeds of $2,016,000 through the issuance of 16,000,000 units at $0.126 per unit. Each unit comprises one common share and one warrant, allowing the purchase of an additional share at $0.25 for two years.

The company paid $70,235 in cash finder's fees and issued 1,393,551 finder's warrants to Churchill SIG Pty for introducing non-Canadian investors. The net proceeds will fund the updated PEA for the Ashram REE/Fluorspar Deposit and general working capital. The securities are subject to a four-month hold period, and the offering involved related party transactions exempt from certain regulatory requirements.

Positive

• Raised $2,016,000 in gross proceeds through private placement
• Funds to be used for updating PEA of Ashram REE/Fluorspar Deposit
• Warrants provide potential for additional future funding at $0.25 per share

Negative

• Potential dilution of existing shareholders due to issuance of 16,000,000 new units
• Cash finder's fees of $70,235 and 1,393,551 finder's warrants issued, increasing costs and potential dilution

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

VANCOUVER, BC / ACCESSWIRE / August 13, 2024 / Commerce Resources Corp. (TSXv:CCE)(FSE:D7H0) (the "Company" or "Commerce") is pleased to announce that it has closed its previously announced non-brokered private placement offering of 16,000,000 units (each, a "Unit") at a price of $0.126 per Unit for gross proceeds of up to $2,016,000 (the "Offering"). Each Unit consists of one common share of the Company (each, a "Share") and one common share purchase warrant (each, a "Warrant"), with each Warrant entitling the holder to purchase one Share at a price of $0.25 per Share for a period of two (2) years from closing of the Offering (the "Closing").

Pursuant to an engagement agreement (the "Term Sheet") between the Company and Churchill SIG Pty Ltd. ("Churchill"), the Company paid cash finder's fees to Churchill in the amount of approximately $70,235 (the "Cash Fee") and issued 1,393,551 finder's warrants (each, a "Finder's Warrant") to Churchill as consideration for their services in introducing certain non-Canadian resident investors to the Company who acquired securities in connection with the distribution. Each Finder's Warrant entitles Churchill to acquire one additional common share in the capital of the Company (a "Finder's Warrant Share") at a price of $0.20 per Finder's Warrant Share for a period of two (2) years from the date of issuance of the Finder's Warrants.

The Units, Shares, Warrants, Warrant Shares, Finder's Warrants and Finder's Warrant Shares are subject to a statutory hold period expiring four months and one day after closing of the Offering.

The net proceeds from the sale of the Offering will be used towards completion of the updated PEA for the Ashram REE/ Fluorspar Deposit and general working capital.

Certain directors, officers and other insiders of the Company acquired securities pursuant to and in connection with the Offering. Such transactions constitute "related party transactions" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). These transactions are exempt from the valuation requirement of MI 61-101 by virtue of the exemption contained in section 5.5(b) as the Company's common shares are not listed on a specified market and from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in section 5.7(a) of MI 61-101 in that the fair market value of the consideration paid to the related party did not exceed 25% of the Company's market capitalization.

None of the securities sold in connection with the Offering have been or will be registered under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Commerce Resources Corp.

Commerce Resources Corp. is a junior mineral resource company focused on the development of the Ashram Rare Earth and Fluorspar Deposit located in Quebec, Canada. The Company is positioning to be one of the lowest cost rare earth producers globally, with a specific focus on being a long-term supplier of mixed rare earth carbonate and/or NdPr oxide to the global market. The Ashram Deposit is characterized by simple rare earth (monazite, bastnaesite, xenotime) and gangue (carbonates) mineralogy, a large tonnage resource at favourable grade, and has demonstrated the production of high-grade (>45% REO) mineral concentrates at high recovery (>70%) in line with active global producers. In addition to being one of the largest rare earth deposits globally, Ashram is also one of the largest fluorspar deposits globally and has the potential to be a long-term supplier to the met-spar and acid-spar markets.

For more information, please visit the corporate website at www.commerceresources.com or email info@commerceresources.com.

On Behalf of the Board of Directors

COMMERCE RESOURCES CORP.

"Ross Carroll"

Ross Carroll
President and Director
Tel: 604-484-2700
Email: rcarroll@commerceresources.com
Web: http://www.commerceresources.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statement Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to the expectations of management regarding the use of proceeds of the Offering; the expiry of hold periods for securities distributed pursuant to the Offering; ; that the Ashram deposit has the potential to become one of the largest fluorspar deposits and a long-term supplier to the mixed rare earth carbonate, NdPr oxide, and met-spar and acid-spar markets; and that the Company is positioning to be one of the lowest cost rare earth element producers globally. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements including that: the proceeds of the Offering may not be used as stated in this news release and those additional risks set out in the Company's public documents filed on SEDAR+ at www.sedarplus.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE: Commerce Resources Corp.

View the original press release on accesswire.com

FAQ

How much did Commerce Resources Corp (CMRZF) raise in its recent private placement?

Commerce Resources Corp raised gross proceeds of $2,016,000 through the issuance of 16,000,000 units at $0.126 per unit in its recent private placement.

What is the exercise price and expiry of the warrants issued by Commerce Resources Corp (CMRZF)?

The warrants issued by Commerce Resources Corp have an exercise price of $0.25 per share and expire two years from the closing date of the offering.

How will Commerce Resources Corp (CMRZF) use the proceeds from the private placement?

The net proceeds will be used towards completing the updated Preliminary Economic Assessment (PEA) for the Ashram REE/Fluorspar Deposit and for general working capital purposes.

What finder's fees did Commerce Resources Corp (CMRZF) pay for the private placement?

Commerce Resources Corp paid cash finder's fees of approximately $70,235 and issued 1,393,551 finder's warrants to Churchill SIG Pty for introducing non-Canadian investors to the offering.