Business
Defiance Raises $1.2M in First Tranche of Private Placement
Vancouver, British Columbia--(Newsfile Corp. - March 11, 2019) - Defiance Silver Corp. (TSXV: ...
About this update from Defiance Silver Corp.
[{"type":"text","content":"Defiance Raises $1.2M in First Tranche of Private PlacementVancouver, British Columbia--(Newsfile Corp. - March 11, 2019) - Defiance Silver Corp. (TSXV: DEF) (\"Defiance\") is pleased to announce that it has closed the first tranche of its private placement in the amount of $1,229,500 and has issued in connection there with 6,147,500 units (the \"Units\") at a price of $0.20 per Unit. Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder thereof to acquire an additional common share of Defiance at an exercise price of $0.30 until March 11, 2021. This closing of the first tranche forms part of a non-brokered private placement of up to 20 million Units for total gross proceeds of $4 M (the \"Offering\"). With the closing of the first tranche, Defiance has strengthened its balance sheet and significantly reduced its outstanding liabilities. Defiance intends to use the proceeds of the financing to permit and complete an aggressive drill program at its San Acacio Silver project that will drill test the recently defined silver-copper anomaly that starts at a depth of 200m and continues to over 1km in depth and measures 400m in wide and 300m in long. (See Press Release dated June 18, 2018). Insiders of Defiance participated in the Offering and subscribed for a total of 1,237,500 Units. Participation of insiders of Defiance in the Offering constitutes a \"related party transaction\" as defined under National Instrument 61-101 - Protection of Minority Security Holders in Special Transactions (\"NI 61-101\"). The Offering is exempt from the formal valuation and minority shareholder approval requirements of NI 61-101 as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceeds 25% of Defiance's market capitalization. Defiance did not file a material change report 21 days prior to the closing of the Offering as the details of the participation of insiders had not been confirmed at that time.\"We would like to thank our shareholders and management for participating in this financing, the first following our successful merger with Valoro. We are excited to have both reduced our debts payable along with providing us the financial flexibility to advance our expanded project portfolio in Mexico\" said Peter Hawley, CEO of Defi...