Aftermath Closes $3.3M Private Placement, Including $2.98M Investment by Mr. Eric Sprott
FOR IMMEDIATE RELEASE November 14, 2019
(AAG2019 – NR #12)
Aftermath Closes $3.3M Private Placement,
Including $2.98M Investment by Mr. Eric Sprott
Vancouver, British Columbia, November 14, 2019 – Aftermath Silver Ltd. (the “Company” or
“Aftermath Silver”) (TSX-V: AAG) (OTCQB: FLMZF) is pleased to announce that it has closed
a non-brokered private placement of 16,500,000 units (the "Units") at a price of $0. 20 per Unit for
gross proceeds of $3,300,000 (the "Private Placement"), as previously announced on September 3,
2019, and November 4 , 2019. Each Unit sold consists of one common share in the capital of the
Company (each a "Common Share") and one-half of one non-transferable common share purchase
warrant (each whole warrant, a " Warrant"). Each Warrant is exercisable by the holder to acquire
one Common Share for a period of 36 months from closing at a price of $0.25 per Common Share.
All securities issued in c onnection with the Private Placement (including shares, warrants, finders’
warrants and any shares issued upon the exercise of warrants and finders’ warrants) are subject to a
hold period and may not be traded until March 14, 2020, except as permitted by applicable securities
legislation and the rules and policies of the TSX Venture Exchange.
Ralph Rushton, President and CEO of Aftermath commented “ We are excited to welcome Mr. Eric
Sprott as Aftermath’s largest investor. We share Mr . Sprott’s vision, hence our focus on acquiring
advanced-stage silver projects with existing resources. With funding now in place, we’re looking
forward to demonstrating the potential of our Cachinal and Challacollo projects."
An aggregate amount of $ 1,400 in cash, 1,041,586 common shares and 520,793 finder’s warrants
were paid as finders' fees in connection with the Private Placement. Each finder’s w arrant is
exercisable by the holder to acquire one Common Share for a period of 36 months from closing at a
price of $0.25 per Common Share.
Eric Sprott through 2176423 Ontario Ltd., a corporation that is beneficially owned by him, acquired
14,879,796 Units under the Private Placement for a total consideration of $2,975,959. Prior to the
Private Placement, Mr. Sprott did not own or control any shares of Aftermath Silver. As a result of
the Private P lacement, Mr. Sprott beneficially owns or controls 14,879,796 common shares and
7,439,898 common share purchase warrants representing 19.51% of the issued and outstanding
common shares of the Company on a non-diluted basis and 26.66 % on a partially diluted basis.
The Units were acquired by Mr. Sprott, through 2176423 Ontario Ltd., for investment purposes. Mr.
Sprott may acquire additional securities of Aftermath Silver including on the open market or through
private acquisitions or he may sell securities of the Company including on the open market or through
private dispositions in the future depending on market conditions, reformulation of plans and/or other
relevant factors that Mr. Sprott considers relevant from time to time.
A copy of 2176423 Ontario Ltd.’s related early warning report will appear on the Company's profile
on SEDAR (www.sedar.com) and may also be obtained by calling Mr. Sprott’s office at (416) 945 -
3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).
The Private Placement is considered to be a “related party transaction”, as defined under Multilateral
Instrument 61 -101 (“MI 61 -101”) as a result of participation by insiders of the Company . The
Company intends to rely on the exemptions from the valuation and minority shareholder approval
requirements of MI 61 -101 contained in sections 5.5(b) and 5.7(a) of MI 61 -101. The Company
intends to rely on the exemptions from the prospectus requirements contained in Section 2.5 of
National Instrument 45-106 to issue the Units to the insider under the Private Placement.
The Company intends to use the proceeds of the Private Placement for the payment of consideration
required in connection with the Cachinal Acquisition, to fund the initial work program at Cachinal
and for working capital purposes. Detailed exploration program design and budget preparation are
currently underway for both projects.
Cachinal Project, Chile
Cachinal is located in Chile’s Antofagasta Region (Region II), about 40 km east of the Pan American
Highway, at an elevation of around 2,700 m above sea level, and 16 km north of Austral Gold’s
Guanaco gold-silver mine. It is a low -sulphidation epithermal deposit which hosts a current CIM
compliant1 18.4 million silver ounce Indicated Mineral Resource (5.66 million tonnes of 101 g/t) and
3 million silver ounce Inferred Mineral Resource (0.82 million tonnes of 115 g/t), with associate d
gold credit.
Challacollo Project, Chile
The Challacollo project is located in Chile’s Tarapaca Region (Region I). The project is
approximately 30 km east of the Pan American Highway. It is a low-sulphidation epithermal deposit
which hosts a Challacollo is a low-sulphidation epithermal deposit which hosts an historic Mineral
Resource2 of 30 million silver ounce Indicated (4.7 million tonnes at 200 g/t silver) and a 6.9 million
silver ounce Inferred (1.6 million tonnes of 134 g/t), with associated gold credits. Power transmission
lines are located 15-30 km from the property and includes water rights.
Qualified Person
Peter Voulgaris, MAIG, MAusIMM, a consultant to the Company, is a non -independent qualified
person as defined by NI 43 -101. Mr. Voulgaris has reviewed the technical content of this news
release, and consents to the information provided in the form and context in which it appears.
About Aftermath Silver Ltd:
Aftermath Silver Ltd. is a Canadian junior exploration company engaged in acquiring, exploring, and
developing mineral properties with an emphasis on silver in Chile. The Company is focused on
growth through the discovery and acquisition of quality projects in stable jurisdictions. Aftermath
Silver continues to seek new opportunities to take advantage of the relatively low silver price.
ON BEHALF OF THE BOARD OF DIRECTORS
“Ralph Rushton”
Ralph Rushton President / CEO604-484-7855
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this
release.
Notes on Mineral Resources
1. Cachinal Mineral Resource: For full details please see the August 2018 National Instrument 43-101
(“NI 43-101”) Technical Report entitled “Independent Technical Report for the Cachinal Silver-Gold
Project, Region II, Chile. ” Prepared by the qualified persons Cole, G and Couture, J. of SRK
Consulting (Canada) Inc. for Aftermath Silver (the “Technical Report”). A copy of the Technical
Report can be found on the Company’s SEDAR profile at www.sedar.com.
2. Challacollo Historic Mineral Resource: An independent “Qualified Person”, as defined in NI 43-
101, has not done sufficient work on behalf of Aftermath to classify the historical estimate as a current
indicated or inferred mineral resource, and Aftermath is not treating the historical estimate as a
current mineral resource.
For full details please see the March 2015 43-101 Technical Report “NI 43-101 Technical Report for
the Challacollo Silver Project, Region 1, Chile ” QPs Mroczek, M., Collins, and M., Butler, S. of
Mining Plus Canada Consulting Ltd . and Tapia, J.C., of Sedgeman S.A. Prepared for Mandalay
Resources, available on the Mandalay Resources SEDAR profile.
Forward Looking Statements
Certain statements within this news release, other than statements of historical fact relating to Aftermath
Silver, are to be considered forward-looking statements with respect to the Company’s intentions for the
Cachinal Project in Chile. Forward-looking statements include statements that are predictive in nature,
are reliant on future events or condi tions, or include words such as “expects”, “goal”, “potential”,
“anticipates”, “plans”, “believes”, “considers”, “significant”, “intends”, “targets”, “estimates”,
“seeks”, attempts”, “assumes”, and other similar expressions.
The forward -looking statements are based on a number of assumptions which, while considered
reasonable by Aftermath Silver Ltd, are, by their nature, subject to inherent risks and uncertainties and
are not guarantees of future performance. Factors that could cause actual results to diff er materially
from those in forward-looking statements include: the interpretation of previous and current results, the
accuracy of exploration results, the accuracy of Mineral Resource Estimates, the anticipated results of
future exploration, the forgoing ability to finance these acquisitions further exploration and development,
delays in the completion of exploration, the future prices of silver and gold, and other metals, and general
economic, market and/or business conditions. There can be no assurances that such statements and
assumptions will prove accurate and, therefore, readers of this news release are advised to rely on their
own evaluation of the information contained within. In addition to the assumptions herein, these
assumptions include the assumptions described in Aftermath Silver Ltd’s Management’s Discussion and
Analysis for the three months ended August 31, 201 9, as filed with the TSX Venture Exchange and
available on SEDAR under Aftermath’s profile at www.sedar.com.
Although Aftermath Silver Ltd. has attempted to identify important risks, uncertainties and other factors
that could cause actual performance, achievements, actions, events, results or conditions to differ
materially from those ex pressed in or implied by the forward -looking statements, there may be other
risks, uncertainties and other factors that cause future performance to differ from what is anticipated,
estimated or intended. Unless otherwise indicated, forward-looking statements contained herein are as
of the date hereof and Aftermath Silver Ltd. does not assume any obligation to update any forward -
looking statements after the date on which such statements were made, except as required by applicable
law.