Aftermath Silver Closes $10 Million Private Placement with Mr. Eric Sprott
FOR IMMEDIATE RELEASE November 28, 2024
(AAG2024 – NR #19)
Aftermath Silver Closes $10 Million Private Placement with Mr. Eric Sprott
Vancouver, British Columbia, (Newsfile Corp. – November 28, 2024) Aftermath Silver Ltd. (the
“Company”) (TSXV: AAG) (OTCQX: AAGFF) (FRA: FLM1) is pleased to announce that it has closed its
previously announced non-brokered private placement (the “Private Placement”) whereby the Company
completed the issuance of 22,222,222 units (each, a “Unit”) at a price of $0.45 per Unit for gross proceeds
of $10,000,000.
Each Unit consists of one common share in the capital of the Company (each, a “ Common Share”) and
one-half of one transferable Common Share purchase warrant (each whole warrant, a “ Warrant”). Each
Warrant is exercisable by the holder thereof to acquire one additional Common Share (a “Warrant Share”)
for a period of 36 months from the date of issuance at a price of $0.70 per Warrant Share.
The Company intends to use the net proceeds to complete geological, metallurgical and engineering
studies at the Company’s Berenguela Silver-Copper-Manganese project in southern Peru (“Berenguela”)
and for general working capital purposes.
All securities issued pursuant to Private Placement are subject to a hold period expiring on
March 29, 2025. In connection with the Private Placement, the Company paid an aggregate cash
commission of $300,000 to certain finders.
None of the securities sold in connection with the Private Placement have been and will not be registered
under the United States Securities Act of 1933, as amended, and no such securities may be offered or sold
in the United States absent registration or an applicable exemption from the registration requirements.
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 the United States or any jurisdiction in which such offer, solicitation or sale
would be unlawful.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, acquired
all 22,222,222 Units for $0. 45 per Unit or a total consideration of $ 10,000,000. The acquisition of
22,222,222 Units resulted in an increase of holdings of approximately 7.2% of the outstanding Common
Shares on a partially diluted basis (assuming exercise of all 2176423 Ontario Ltd.’s Warrants) from what
was reported in 2176423 Ontario Ltd.’s last early warning report. Prior to the Private Placement, Mr.
Sprott beneficially owned and controlled 49,745,408 Shares and 9,142,857 Warrants representing
approximately 18.7% of the outstanding Shares on a non -diluted basis and 21.5% on a partially diluted
basis assuming the exercise of such Warrants. Following the completion of the Private Placement, Mr.
Sprott beneficially owns and controls 71,967,630 Shares and 20,253,968 Warrants representing
approximately 25.0% of the outstanding Shares on a non -diluted basis and 30.0% on a partially diluted
basis assuming the exercise of such Warrants.
The Units were acquired by Sprott for investment purposes. Mr. Sprott has a long -term view of the
investment and may acquire additional securities of the Company including on the open market or
through private acquisitions or sell securities of the Company including on the open market or through
private dispositions in the future depending on market conditio ns, reformulation of plans and/or other
relevant factors.
The participation by 2176423 Ontario Ltd. is considered a related party transaction within the meaning of
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-
101"). The Company has relied on exemptions from the formal valuation and minority shareholder
approval requirements of MI 61-101 as neither the fair market value of the securities issued to 2176423
Ontario Ltd. nor the consideration for such securities will exceed 25% of the Company’s market
capitalization.
A copy of Mr. Sprott's early warning report will appear on Aftermath Silver’s profile on SEDAR+ and may
also be obtained by calling Mr. Sprott’s office at (416) 945 -3294 (1106-7 King Street East, Toronto, ON,
M5C 3C5).
Berenguela Project: Background
• The Company has an option to acquire a 100% interest in Berenguela through a binding
agreement with SSR Mining.
• Berenguela hosts a potentially open- pittable silver-copper-manganese Mineral Resource close to
Santa Lucia in Puno province, southern Peru.
• Silver, copper and manganese have crucial industrial applications in the clean energy and battery
spaces. Copper and manganese have been designated critical metals by the US government and
the European Union.
• The project is less than 6km from road, rail and power lines and 4 hours from Arequipa by sealed
road.
• Aftermath published a resource estimate in March 2023 based on over 300 core and RC holes.
• Metallurgical test work is underway adding to historic work, with the goal of producing silver and
copper metal and a commercial battery-grade or fertilizer-grade manganese product.
Qualified person
Michael Parker, a fellow of the AusIMM and a non -independent director of Aftermath, is a non -
independent qualified person, as defined by National Instrument 43-101. Mr. Parker 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 leading Canadian junior exploration company focused on silver, and aims to
deliver shareholder value through the discovery, acquisition and development of quality silver projects in
stable jurisdictions. Aftermath has developed a pipeline of projects at various stages of advancement. The
Company's projects have been selected based on growth and development potential.
• Challacollo Silver-Gold project. The Company owns a 100% interest in the Challacollo silver -gold
project. A NI 43 -101 Mineral Resource was released on December 15, 2020 (available on SEDAR +
and the Company’s web page). The Company is currently completing environmental permitting in
anticipation of an upcoming drill program.
• Cachinal Silver-Gold project. The Company owns a 100% interest in the Cachinal Ag -Au project,
located 2.5 hours south of Antofagasta. On September 16, 2020, the Company released a CIM
compliant Mineral Resource and accompanying NI 43 -101 Technical Report (available on SEDAR +
and on the Company's web page).
ON BEHALF OF THE BOARD OF DIRECTORS
“Ralph Rushton”
Ralph Rushton
CEO and Director
604-484-7855
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
Cautionary Note Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities
legislation. “Forward-looking information ” includes, but is not limited to, statements with respect to the
activities, events or developments that the Company expects or anticipates will or may occur in the future,
including the completion and anticipated results of planned exploration activities and the anticipated use of
proceeds from the Private Placement. Generally, but not always, forward-looking information and statements
can be identified by the use of words such as “plans”, “expects”, “is expected ”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or the negative connotation thereof or
variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”,
“might” or “will be taken”, “occur” or “be achieved” or the negative connation thereof.
Such forward -looking information and statements are based on numerous assumptions, including among
others, that the Company will use the proceeds of the Private Placement as anticipated . Although the
assumptions made by the Company in providing forward -looking information or making forward -looking
statements are considered reasonable by management at the time, there can be no assurance that such
assumptions will prove to be accurate.
There can be no assurance that such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements. Important factors that could cause actual
results to differ materially from the Company’s plans or expectations include the risk that the Company will not
use the proceeds of the Private Placement as anticipated , risks relating to the actual results of current
exploration activities, availability of capital and financing, general ec onomic, market or business conditions,
and regulatory changes.
Although the Company has attempted to identify important factors that could cause actual results to differ
materially from those contained in the forward-looking information or implied by forward-looking information,
there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no
assurance that forward -looking information and statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should
not place undue reliance on forward-looking statements or information.
The Company expressly disclaims any intention or obligation to update or revise any forward -looking
statements whether as a result of new information, future events or otherwise except as otherwise required by
applicable securities legislation.