NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN OR INTO THE UNITED STATES
Toronto, Ontario, January 24, 2022 Silver Mountain Resources Inc. Silver Mountain or the Company is pleased to announce that it has entered into an amendment to the engagement letter in respect of its proposed initial public offering (the Offering The Offering is now agreed to consist of a treasury offering of 46,000,000 units of the Company (the Units at a price of $0.50 per Unit, for gross proceeds of $23,000,000. The Offering was upsized from an initial size of $15,000,000 as a result of excess demand.
Each Unit will be comprised of one common share in the capital of the Company (a Common Share and one-half of one Common Share purchase warrant (each whole warrant, a Warrant Each Warrant will entitle the holder thereof to acquire one Common Share at an exercise price of $0.70 per Common Share for a period of 24 months following the closing of the Offering (the ).
The Offering is being made through a syndicate of underwriters co-led by Eight Capital Eight Capital and Sprott Capital Partners LP Sprott and together with Eight Capital, the Co-Lead Underwriters and including Research Capital Corporation (collectively with the Co-Lead Underwriters, the “Underwriters”)
The Company has granted an over-allotment option (the Over-Allotment Option to the Underwriters to sell, as Underwriters of the Company, up to an additional 6,900,000 Units at the Offering Price to cover any over-allocation position as at Closing. The Over-Allotment Option is exercisable, in whole or in part, at any time for a period of 30 days from the Closing. The Over- Allotment Option may be exercised to acquire Units, Shares and/or Warrants (or any combination thereof) at the discretion of the Underwriters.
Completion of the Offering remains subject to a number of conditions including, among other things, the filing and issue of a receipt for a final prospectus and approval for listing of the Common Shares on the TSX Venture Exchange (the “TSXV”)
No securities regulatory authority has either approved or disapproved of the contents of this news release. The Units have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws. Accordingly, the Units may not be offered or sold within the United States or to U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Silver Mountain in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Silver Mountain
Silver Mountain Resources Inc. is a silver explorer and mine developer planning to re-commence production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirreyna Project in Huancavelica, Peru.
Silver subsidiary Sociedad Minera Reliquias S.A.C. owns 100% of its concessions and holds more than 27,000 Ha. in the district of Castrovirreyna, in Huancavelica, Peru.
For Further Information Contact:
Alfredo Bazo Jean Pierre Fort
President, CEO & Director Chief Financial Officer
Silver Mountain Resources Inc
82 Richmond Street East
Toronto, ON M5C 1P1
(647) 262 4017