Business
Silver Mountain Announces Closing of Bought Deal Prospectus Offering
Toronto, Ontario--(Newsfile Corp. - February 9, 2023) - Silver Mountain Resources Inc. (TSXV: AGM...
About this update from Silver Mountain Resources, Inc. Class A
[{"type":"text","content":"Silver Mountain Announces Closing of Bought Deal Prospectus OfferingToronto, Ontario--(Newsfile Corp. - February 9, 2023) - Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB: AGMRF) (BVL: AGMR) (\"Silver Mountain\" or the \"Company\") (the \"Company\"), is pleased to announce that it has completed its previously announced bought deal prospectus offering (the \"Offering\") of units of the Company (the \"Units\") with a syndicate of underwriters led by Sprott Capital Partners LP (\"Sprott\") and Eight Capital, and including Canaccord Genuity Corp. and Research Capital Corp. (collectively, the \"Underwriters\"). Pursuant to the Offering, Silver Mountain has issued an aggregate of 31,050,000 Units at a price of C$0.30 per Unit (the \"Offering Price\") for aggregate gross proceeds of C$9,315,000, including the exercise by the Underwriters of the over-allotment option to purchase an additional 4,050,000 Units at the Offering Price.The Offering was completed pursuant to an underwriting agreement (the \"Underwriting Agreement\") dated February 6, 2023, between the Company and the Underwriters.Each Unit consists of one class A common share of the Company (a \"Common Share\") and one-half of one Common Share purchase warrant (each whole warrant, a \"Warrant\"). Each Warrant entitles the holder thereof to purchase one Common Share (a \"Warrant Share\") at an exercise price of C$0.45 for a period of 36 months. The Warrants were issued pursuant to, and are governed by, the terms of a warrant indenture dated February 9, 2023 (the \"Warrant Indenture\") between the Company and Odyssey Trust Company.The Warrants have been conditionally approved for listing on the TSX Venture Exchange and are expected to commence trading following the closing, subject to the satisfaction of all listing conditions.Pursuant to the terms of the Underwriting Agreement, the Underwriters received a cash commission equal to 5.0% of the gross proceeds from the sale of the Units pursuant to the Offering, subject to a reduced cash commission of 2.5% of the gross proceeds from the sale of the Units to certain president's list purchasers.The net proceeds from the Offering will be used for development of the underground mine at the Castrovirreyna Project in Huancavelica, Peru, mine rehabilitation, preparation of the mine and for general and corporate working capital purpose...