CMC Metals: A Strategic Move to Strengthen Balance Sheet

CMC Metals Ltd. (TSX-V: CMB) (Frankfurt:ZM5P) ("CMC" or the "Company") has announced a strategic move to settle and extinguish $85,000 of outstanding debt through the issuance of 3,400,000 common shares at a deemed price of $0.025 per share. This transaction, approved by the TSX Venture Exchange (TSXV), is a testament to CMC's commitment to improving its financial health and positioning itself for future growth.

The issuance of shares to settle debt is a common practice among companies looking to preserve cash and strengthen their balance sheets. By converting debt into equity, CMC is able to reduce its debt-to-equity ratio, making its financial position more robust. This move is particularly beneficial in the current market conditions, where investors are increasingly focusing on companies with strong balance sheets and solid financial foundations.

The debt settlement is subject to a four-month hold period, during which the shares issued cannot be traded. This restriction is in place to prevent any potential manipulation of the share price and to ensure the integrity of the market. Once the hold period expires, the shares will be freely tradable, and investors will have the opportunity to participate in CMC's growth story.



CMC's decision to settle debt through share issuance is a strategic move that aligns with its long-term goals. By reducing its debt load, CMC is better positioned to invest in its projects, such as the Silverknife project, which is immediately adjacent to Coeur Mining's Silvertip deposit, one of the highest-grade underground CRD-vein deposits in the world. Additionally, CMC's other polymetallic projects, such as the Silver Hart Deposit and Blue Heaven claims (Yukon) and the Amy claims (north-central British Columbia), offer significant potential for growth and value creation.

In conclusion, CMC Metals Ltd.'s decision to settle debt through share issuance is a strategic move that demonstrates the company's commitment to improving its financial health and positioning itself for future growth. By reducing its debt load and strengthening its balance sheet, CMC is better equipped to invest in its projects and capitalize on the opportunities that lie ahead. As the market continues to evolve, investors should keep a close eye on CMC's progress and consider the potential benefits of investing in a company with a strong financial foundation and a promising portfolio of projects.