Silver Mountain Increases Previously Announced Bought Deal Financing to C$21.7 Million
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO THE UNITED STATES
THE SHELF PROSPECTUS SUPPLEMENT, THE CORRESPONDING BASE SHELF PROSPECTUS AND ANY AMENDMENT TO THE DOCUMENTS ARE ACCESSIBLE THROUGH SEDAR+ OR WILL BE ACCESSIBLE THROUGH SEDAR+ WITHIN 2 BUSINESS DAYS, AS APPLICABLE
Toronto, Ontario – July 18, 2025 – Silver Mountain Resources Inc. (“Silver Mountain” or the “Company”) (TSXV: AGMR) is pleased to announce that, due to strong demand, it has increased the size of the previously announced bought deal offering of units to 16,722,000 units (the “Units”) at a price of C$1.30 for gross proceeds of C$21,738,600 (the “Offering”). Each Unit will be comprised of one common share in the capital of the Company (each, a “Common Share”) and one-half (½) of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share at an exercise price of C$1.70 for 24 months following the completion of the Offering. The Company previously entered into an agreement with Velocity Capital Partners as sole bookrunner on behalf of a syndicate of underwriters (collectively, the “Underwriters”). The Company has granted the Underwriters an option (the “Over-allotment Option”), exercisable in whole or in part, to purchase up to an additional 2,508,300 Units for a period of 30 days from and including the closing date of the Offering to cover over-allotments, if any, and for market stabilization purposes. The Underwriters shall be under no obligation whatsoever to exercise the Over-allotment Option in whole or in part. If the Over-allotment Option is exercised in full, the aggregate gross proceeds of the Offering will be approximately C$25 million.
The Units will be offered by way of: (i) a prospectus supplement (the “Prospectus Supplement”) to Silver Mountain’s short form base shelf prospectus dated October 28, 2024 (the “Base Shelf Prospectus”) in each of the provinces and territories of Canada, except Québec; (ii) in the United States or to or for the account or benefit of “U.S. persons” as defined by Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), by way of private placement pursuant to the exemption from registration provided for under Regulation D and/or Section 4(a)(2) and Rule 144A of U.S. Securities Act and the applicable securities laws of any state of the United States; and (iii) in jurisdictions outside of Canada and the United States as are agreed to by the Company and the Underwriters on a private placement or equivalent basis.
The Company intends to use the net proceeds from the Offering to further develop the Reliquias mine, Caudalosa plant and related facilities, and for working capital and general corporate purposes.
The Offering is expected to close on or about July 29, 2025 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange (“TSXV”).
Access to the Prospectus Supplement, the Base Shelf Prospectus and any amendment to such documents is provided in accordance with securities legislation relating to the procedures for providing access to a shelf prospectus supplement, a base shelf prospectus and any amendment. The Base Shelf Prospectus is, and the Prospectus Supplement will be (within two business days from the date hereof), accessible on SEDAR+ at www.sedarplus.com. An electronic or paper copy of the Prospectus Supplement, Base Shelf Prospectus, and any amendment to such documents may be obtained, without charge, from Velocity Trade Capital Ltd. by mail at 100 Yonge Street, Suite 1800, Toronto, Ontario M5C 2W1, by telephone at (416) 323-2154, or by email at syndication@velocitytradecapital.com, by providing the contact with an email address or address, as applicable.
The securities being offered have not been, nor will they be, registered under the U.S. Securities Act, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. 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 Silver Mountain Resources Inc.
Silver Mountain Resources Inc. is a Canadian silver exploration and development company focused on the restart of its 100%-owned silver-polymetallic projects in central Peru. The Company’s principal asset is the past-producing Reliquias underground mine, which is being advanced toward recommencement of operations. Silver Mountain is committed to high environmental and social standards and aims to build one of the next great Peruvian silver producers.
For Further Information Contact:
Alvaro Espinoza, Chief Executive Officer
Silver Mountain Resources Inc.
82 Richmond Street East, Toronto, ON M5C 1P1
+51 997 377 968,
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information within the meaning of Canadian securities legislation (collectively, “forward-looking statements”) that relate to Silver Mountain’s current expectations and views of future events. Any statements that express or involve discussions as to expectations, beliefs, plans, objectives, assumptions, or future events or performance (often, but not always, through the use of words or phrases such as “will likely result,” “are expected to, “expects”, “will continue,” “is anticipated,” “anticipates,” “believes,” “estimated,” “intends,” “plans,” “forecast,” “projection,” “strategy,” “objective” and “outlook”) are not historical facts and may be forward-looking statements and may involve estimates, assumptions, and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements in respect of the recommencement of operations at the Reliquias Mine. No assurance can be given that these expectations will prove to be correct, and such forward-looking statements included in this news release should not be unduly relied upon. These statements speak only as of the date of this news release.
Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond Silver Mountain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the factors set forth under “Caution Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Information Form dated April 26, 2024, and other disclosure documents available on the Company’s profile on SEDAR+ at www.sedarplus.ca. Silver Mountain undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. New factors emerge from time to time, and it is not possible for Silver Mountain to predict all of them or assess the impact of each such factor or the extent to which any factor, or combination of factors, may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement.