CMX Announces Completion of Financing and Private Placement of Shares-for-Debt

(via TheNewswire)

CALGARY, ALBERTA –TheNewswire – November 19, 2021–CMX Gold & Silver Corp.(CSE: CXC) (OTC: CXXMF)(CNSX: CXC.CN) (“CMX” or the “Company”) announces that CMX has completed a private placement of 3,470,000 units (the “Units”) and a private placement of 15,915,000 common shares (the “Shares”). The two private placements significantly improved the company’s financial position as most of its debt was reduced.

The shares were issued for $ 0.05 per unit, with each unit consisting of one share and one share purchase warrant that can be exercised for two years $ 0.10 per share. Units for $ 90,000 were issued for cash and the balance of $ 83,500 the shares were issued to settle debts. The private placement of Shares issued for $ 0.075 per share, billed $ 1,193,625 of debt. All securities issued in the private placements are subject to a hold period under applicable Canadian securities laws of four months and one day from closing. Following the two private placements, CMX has 62,690,724 shares issued and outstanding.

The two private placements put CMX on a solid financial footing to support the company’s filing to resume trading on the Canadian Securities Exchange. The CMX restoration application is currently being considered by the CSE, following the previously announced one October 4, 2021 Revocation of the trade cessation order against CMX. Jan Alston, President & CEO of CMX, stated, “The elimination of essentially all of the debts the company has incurred over the past five to ten years was a necessary step in reactivating CMX, which puts the company in a strong position to Funding opportunities for future exploration programs at its wholly owned Clayton Silver Project in Idaho. The timing is perfect for CMX to participate in the positive cycle for commodities, especially for silver. “

Affiliated persons have subscribed for shares and shares in the two private placements. Two directors, a company controlled by a director, two officers, a company controlled by an officer’s spouse, and an insider who owns more than ten percent of the issued and outstanding CMX stock have combined 1,800,000 units and 11,375,000 Shares subscribed. Therefore, the transaction constitutes a related party transaction under the provisions of multilateral instrument 61-101Protection of minority paper holders in special transactions(“MI 61-101”). The Company has relied on the exceptions contained in Sections 5.5 (b) and 5.7 (1) (a) of MI 61-101 to the formal assessment and approval of minority shareholders of MI 61-101 for the participation of related parties in the private Placements as CMX is not listed in certain specific markets and neither the market value nor the market value of the consideration for the transaction, insofar as it relates to the related parties, exceeded 25% of the market capitalization of CMX. Further details will be included in a Material Changes Report to be submitted by the Company on SEDAR. A material change report was not filed 21 days prior to the material change date as the details of the transaction had not been confirmed at that time and no person would be affected by such shorter notice.

About the Clayton Silver Project

CMX’s primary asset is its 100% owned Clayton Silver property in the mining friendly State of Idaho, USA The property covers approximately 276 hectares (684 acres) in Circle Custer in south-central Idahoincluding the former Clayton silver-lead-zinc mine. The Clayton Mine was developed at eight levels to 1,100 feet (335 meters) below the surface and consists of approximately 6,000 meters (19,690 feet) of underground development. Two large ore bodies have been partially mined: the “South Ore Body” and the “North Ore Body”. Both are tabular ore bodies that extend northeast in depth. Production started in the south Ore body and development extended northward Ore body. As a result of lower silver prices, the mine closed in early 1986. The mineralization is open to the north, south and at depth, all of which have not yet been tested. For example, there is a possibility that resources exist at shallower depths below and adjacent to the south Ore body.

The recorded production of the Clayton mine Contains 7,031,110 oz of silver, 86,771,527 lbs of lead, 28,172,211 lbs of zinc, 1,664,177 lbs of copper, and minor amounts of gold from an estimated 2,145,652 tons of ore mined between 1934 and 1985. Mineralization was originally discovered in 1877 and the mine operated almost continuously for 50 years until it closed in 1986. The Company has historical drilling and mining information available for the Clayton mine. Very little exploration has been conducted on the to dateClayton Silver Lot. Significant potential is shown in hole 1501-A, which was drilled in the mid-1960s and penetrated the mineralized zone for 1,425 feet. At this depth the hole intersected 22 feet grading 4.07 ounces Ag / t, 5.75% lead, and 5.37% zinc (note: true width is unknown).

Depending on the fundraising process, CMX plans to begin geophysical and diamond drilling on the Clayton silver property beginning in spring 2022.

The CSE has not reviewed this press release and assumes no responsibility for the adequacy or accuracy of this press release.

For more information contact: Jan M. Alston, President & CEO at(403) 457-2697 or at[email protected]; orVisit the company’s website:www.cmxgoldandsilver.com

WARNING: The company relies on litigation protection for “forward-looking” statements. The information in this press release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those implied in the forward-looking information. Factors that could cause actual results to differ materially include, but are not limited to, inaccurate assumptions about the company’s business, changes in securities regulations, other changes in laws or regulations, unexpected risks of the COVID-19 pandemic crisis, changes in general economic or financial market conditions and the inability to raise additional funding. Readers are cautioned not to place undue reliance on this forward-looking information. The company undertakes no obligation to revise or update this forward-looking information after the date of this publication or to revise such information to reflect the occurrence of future unforeseen events, except as required by applicable securities laws.

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