Silver Mountain Resources to Raise $7.5M in Unit Sale Agreement

Silver Mountain Resources has entered into an agreement to offer for sale up to 68.20M units at an offering price of $0.11 per unit, aiming to raise up to $7.5M in gross proceeds. Each unit consists of one common share and one common share purchase warrant, allowing the holder to acquire an additional common share. The offering is set to close on or about April 24, with the proceeds intended for the development of the Reliquias mine and general corporate purposes.

Key Takeaways

• Silver Mountain Resources (OTCQB:AGMRF) has entered into an agreement to offer for sale up to 68.20M units at an offering price of $0.11 per unit, aiming for gross proceeds of up to $7.5M.
• Each unit will consist of one common share and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share for 48 months at an exercise price of $0.135.
• The offering is anticipated to close on or about April 24.
• The company plans to utilize the proceeds for the development of the Reliquias mine, as well as for working capital and general corporate purposes.
• The joint bookrunners and co-lead agents for the offering are Eight Capital and SCP Resource Finance LP.

Analysis

Silver Mountain Resources' recent agreement to offer for sale up to 68.20 million units at an offering price of $0.11 per unit to raise up to $7.5 million will have significant implications. The development of the Reliquias mine and general corporate purposes will benefit directly from the raised proceeds. Additionally, shareholders and potential investors will be closely monitoring the short-term effects on the company's stock price and long-term growth prospects. The co-lead agents for the offering, Eight Capital and SCP Resource Finance LP, will be instrumental in ensuring its success. This move reflects Silver Mountain Resources' strategic efforts to secure funding for its mining projects and corporate initiatives.

Did You Know?

• Offering Units: The company is offering for sale up to 68.20 million units, each containing one common share and one common share purchase warrant.
• Purpose of Proceeds: The gross proceeds raised from the offering, which could amount to $7.5 million, will be utilized for the development of the Reliquias mine and general corporate purposes.
• Bookrunners and Co-Lead Agents: Eight Capital and SCP Resource Finance LP are the joint bookrunners and co-lead agents for the offering.