#Mining Stock News: #SilverCrest
(TSXV: $SIL.V; NYSE: $SILV) Announces C$22 Million Bought Deal Financing; SSR
Mining To Exercise Its Right to Maintain Its Pro Rata Interest of 9.9%
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
Vancouver, British Columbia - July 23, 2019
(Investorideas.com Newswire) SilverCrest Metals Inc. (TSXV:
SIL.V; NYSE
American: SILV) ("SilverCrest" or the
"Company") is pleased to announce that it has entered into an
agreement with a syndicate of underwriters (the "Underwriters") led
by National Bank Financial Inc. and Desjardins Capital Markets, pursuant to
which the Underwriters have agreed to purchase, on a bought-deal basis,
3,762,000 common shares of the Company ("Shares") at a price of
C$5.85 per Share for aggregate gross proceeds to the Company of C$22.0 million
(the "Offering").
The Underwriters have been granted an option (the
"Over-Allotment Option"), exercisable in whole or in part, at any
time within 30 days following the closing of the Offering, to purchase from the
Company up to an additional 15% of the Shares offered under the Offering.
The Company will pay the Underwriters a cash
commission of up to 5% of the gross proceeds of the Offering, including any
proceeds realized on exercise of the Underwriters' Option, subject to reduced
commission of 2.5% on maximum proceeds of $500,000 received from President's
List subscribers.
SSR Mining Inc. ("SSR Mining") has
indicated that it will elect to exercise its right to maintain its pro rata
ownership interest of up to 9.9% of the outstanding shares of SilverCrest
pursuant to an agreement between the Company and SSR Mining dated November 28,
2018 (see news release dated November 29, 2018). Accordingly, SSR Mining has
agreed to purchase a minimum of 718,000 shares of SilverCrest and, in the event
of exercise of the Over-Allotment Option in full, a maximum of 780,000 shares
of SilverCrest at a price of C$5.85 for aggregate proceeds of C$4.2 million
(maximum C$4.6 million) in a separate non-brokered private placement.
The net proceeds of the Offering will be used for continued
exploration and advancement of the Las Chispas Project to feasibility level and
for working capital purposes.
The Offering is scheduled to close on or about
August 15, 2019 and is subject to a number of conditions, including receipt of
all necessary securities regulatory approvals and the approval of the TSX
Venture Exchange.
The Offering is being made pursuant to a short form
prospectus to be filed in each of the provinces of Canada (other than Quebec)
and may be offered in the United States to Qualified Institutional Buyers
pursuant to exemptions from the registration requirements under rule 144A of
the United States Securities Act of 1933, as amended (the "U.S. Securities
Act"), in a manner that does not require the Offering to be registered in
the United States. The Offering may be also sold in such other jurisdictions as
the Company and the Underwriters may agree.
In the event that related parties of the Company
acquire Shares under the Offering, such participation would be considered to be
"related party transactions" within the meaning of TSX Venture
Exchange Policy 5.9 and Multilateral Instrument 61‑101 ("MI 61‑101").
The Company intends to rely on the exemptions from the formal valuation and
minority approval requirements of MI 61‑101 contained in sections 5.5(a) and
5.7(1)(a) of MI 61‑101 in respect of any related party participation on the
basis that neither the aggregate fair market value of the Shares to be
distributed to nor the consideration to be paid by related parties will exceed 25%
of the Company's market capitalization as determined under MI 61‑101.
This news 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. The securities have not been registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements.
ABOUT SILVERCREST METALS INC.
SilverCrest is a Canadian precious metals
exploration company headquartered in Vancouver, BC, that is focused on new
discoveries, value-added acquisitions and targeting production in Mexico's
historic precious metal districts. The Company's current focus is on the
high-grade, historic Las Chispas mining district in Sonora, Mexico. SilverCrest
is the first company to successfully drill-test the historic Las Chispas
Project resulting in numerous discoveries. The Company is led by a proven
management team in all aspects of the precious metal mining sector, including
taking projects through discovery, finance, on time and on budget construction,
and production.
FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking
statements" within the meaning of Canadian securities legislation. Such
forward-looking statements concern the intended use of proceeds and the
scheduled closing date for the Offering. Such forward-looking statements or
information are based on a number of assumptions, which may prove to be
incorrect. Assumptions have been made regarding, among other things: conditions
in general economic and financial markets; timing and amount of capital
expenditures; and effects of regulation by governmental agencies. The actual
results could differ materially from those anticipated in these forward looking
statements as a result of the risk factors including: the timing and content of
work programs; results of exploration activities of mineral properties; the
interpretation of drilling results and other geological data; and general
market and industry conditions. Forward-looking statements are based on the
expectations and opinions of the Company's management on the date the
statements are made. The assumptions used in the preparation of such
statements, although considered reasonable at the time of preparation, may
prove to be imprecise and, as such, readers are cautioned not to place undue
reliance on these forward-looking statements, which speak only as of the date
the statements were made. The Company undertakes no obligation to update or
revise any forward-looking statements included in this news release if these
beliefs, estimates and opinions or other circumstances should change, except as
otherwise required by applicable law.
N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
Chief Executive Officer
SilverCrest Metals Inc.
For Further Information:
SilverCrest Metals Inc.
Contact: Jacy Zerb, Investor Relations Manager
Telephone: +1 (604) 694-1730
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1730 (Canada & USA)
Email: info@silvercrestmetals.com
Website: www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Contact: Jacy Zerb, Investor Relations Manager
Telephone: +1 (604) 694-1730
Fax: +1 (604) 357-1313
Toll Free: 1-866-691-1730 (Canada & USA)
Email: info@silvercrestmetals.com
Website: www.silvercrestmetals.com
570 Granville Street, Suite 501
Vancouver, British Columbia V6C 3P1
Neither TSX Venture Exchange nor its Regulation
Services Provider (as defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
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