Sudbury, Ontario – April 17, 2018 – Supreme Metals Corp. (the “Company” or “Supreme”) (CSE: ABJ) (FSE: A68) today announced that it has closed the second and final tranche (the “Second Tranche”) of its non-brokered private placement previously announced on March 21, 2018 (the “Offering”). Pursuant to the Second Tranche, a total of 16,000,000 units (the “Units”) were issued at a price of $0.05 per Unit for gross proceeds of $800,000. Each Unit is comprised of one common share of the Company (each a “Common Share”) and one Common Share purchase warrant (each a “Warrant”). Each Warrant shall entitle the holder thereof to purchase one additional Common Share at an exercise price of $0.075 for a period of 24 months following the closing of the Offering. Following the close of the Second Tranche, the Company closed fully subscribed for aggregate gross proceeds of $2 million pursuant to the Offering.
All securities issued pursuant to the Second Tranche, including the Common Shares underlying the Warrants, are subject to a statutory hold period which will expire on August 14, 2018. The Company intends to use the net proceeds for general working capital and for further development of its exploration projects.
Option of Non-Core Properties
The Company also announced today that it has entered into two separate option agreements (the “Agreements”) with American Cobalt Corp., a wholly owned subsidiary of International Cobalt Corp. (CSE:CO), for its Foster Marshall Project and Mount Thom Project (collectively known as the “Projects”). Pursuant to the Agreements, American Cobalt can acquire up to an 80% interest in each Project by making an initial payment of $87,500 and reaching certain development milestones. American Cobalt will have the option to earn an initial sixty percent (60%) interest in any of the Projects by funding exploration to reach an NI 43-101 compliant resource estimate, based on no less than $100,000 of exploration expenditure by American, within sixty (60) months of signing of the Agreements. American Cobalt with have the right to earn a further twenty percent (20%) interest and any of the Projects by completing a Preliminary Economic Assessment (PEA) within twenty-four (24) months of completing the initial resource estimate. Each of the Projects is subject to a 1.5% NSR in favor of a third party.
About Supreme Metals Corp.
Supreme Metals Corp. (CSE: ABJ) (FSE:A68) is a Canadian based exploration company with a focused approach in the area of green and energy metals in the Western World adjacent to anticipated downstream manufacturing projects that will have a significant need for these metals.
On Behalf of the Board,
Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results. Such statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements. There is no assurance the private placement, property option, change of board or reinstatement of trading referred to above will close on the terms as stated, or at all. The Company disclaims any intention or obligation to revise or update such statements.