CMC Metals Cancels Private Placement and Acquisition of the Gavilanes Project

CMC Metals Ltd. has announced the cancellation of a $1.2 million private placement, initially revealed on February 28, 2024, due to the unsuccessful extension of the exploration permit for the Gavilanes project in Durango, Mexico, by the property owner with SEMARNAT, Mexico's environmental authority. This failure has also led CMC Metals to end its acquisition agreement with Sailfish Royalty Corp. for the Gavilanes project but maintains an interest in securing exclusivity rights until October 2024.

The company now plans to shift its focus back to its principal project, the Silverknife Property in British Columbia, which boasts significant potential for high-grade silver-lead-zinc carbonate replacement and skarn deposits. Kevin Brewer, CMC's President and CEO, expressed disappointment over the inability to renew the permit but noted the company's continued interest in the Gavilanes project under different terms. Meanwhile, CMC will concentrate on the Silverknife Project, aiming for discoveries in silver-lead-zinc-critical mineral carbonate replacement and skarn deposits.