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Clean Air Metals Looking to Raise $5 Million

May 27, 2020

Clean Air Metals Inc. has entered into an agreement with Paradigm Capital Inc., on behalf of a syndicate of agents, in connection with a "best efforts" private placement of up to 10,000,000 common shares of the company, issued on a flow-through basis at a price of C$0.50 per FT Share, for aggregate gross proceeds of up to C$5,000,000.

The FT Shares will qualify as "flow-through shares" (within the meaning of subsection 66 (15) of the Income Tax Act (Canada)) (the "ITA").The gross proceeds from the Offering will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" as such terms are defined in the ITA (the "Qualifying Expenditures") related to the Company's projects in Canada. All Qualifying Expenditures will be renounced in favour of the subscribers of the FT Shares effective December 31, 2020.

In addition, the Agents have been granted an option to sell such number of additional FT Shares at the Issue Price for additional gross proceeds of up to C$1,000,000.

The Offering is expected to close on or about June 16, 2020, or such other date as agreed between the Company and the Agents. The completion of the Offering is subject to certain closing conditions including, but not limited to, the receipt of all necessary regulatory and other approvals, including the conditional approval and final approval of the TSX Venture Exchange. All securities issued under the Offering will be subject to a statutory hold period of four months and one day from the closing date of the Offering. 

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press 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 State in which such offer, solicitation or sale would be unlawful.

About Clean Air Metals

Further to its press release of May 22, 2020, Clean Air Metals Inc. has initiated a Phase 1 drill program of 10,000m on the Escape Lake Intrusion and PGE-Cu-Ni mineralized horizon on the Thunder Bay North Project. "The proceeds of this flow through financing will allow the Company to accelerate the pace of exploration at the Thunder North Project" said Chief Executive Officer Abraham Drost.

Clean Air Metals Inc. and its wholly-owned subsidiary Panoramic PGMs (Canada) Ltd. acknowledge that the Escape Lake Property is on the traditional territory of the Fort William First Nation and the Red Rock First Nation, signatories to the Robinson-Superior Treaty of 1850.


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