Comstock Metals Ltd announced that it expects to receive CAD 2 million in funding from Select Sands Corp.

Comstock Metals Ltd (TSXV:CSL) announced a non-brokered private placement of up to 10,000,000 units at a price of CAD 0.15 for proceeds of CAD 1,500,000 and 2,777,778 flow through units at a price of CAD 0.18 per flow-through unit for gross proceeds of up to CAD 500,000 on January 26, 2017. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase an additional common share of the company at CAD 0.20 per share for a period of 24 months from the date of closing.

Each flow-through unit consists of one flow-through common share and one-half of one non-transferable common share purchase warrant. Each flow-through warrant will entitle the holder to purchase one additional non flow-through common share at an exercise price of CAD 0.20 per share for a period of 24 months from the closing date. The warrants and flow-through warrants will include an acceleration clause, whereby, if the weighted average trading price of the company's common shares on the TSX Venture Exchange is at a price equal to or greater than CAD 0.40 for a period of 20 consecutive trading days, the company will have the right to accelerate the expiry date of the warrants and flow-through warrants.

If the company exercises such right, it will give written notice to the holders of the warrants and flow-through warrants that such warrants will expire 30 days from the date of notice to the warrant holders. Such notice by the company to the holders of the warrants and flow-through warrants may not be given until 4 months and one day after the closing date. The transaction is subject to the approval of the TSX Venture Exchange.

The company may pay finder's fees. Securities issued under the private placement will be subject to a four-month hold period from the date of closing. The company will have an option to increase the size of each offering by up to 25% which, if fully exercised, would bring the aggregate gross amount raised to CAD 2,500,000.

The expected closing of the transaction will occur mid to late February 2017.