Abrasilver Announces Closing of C$10M Bought Deal Private Placement
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ABRASILVER ANNOUNCES CLOSING OF C$10M BOUGHT DEAL PRIVATE PLACEMENT
Toronto, ON – December 6, 2022 – AbraSilver Resource Corp. ( “AbraSilver” or the “Company”)
(TSXV: ABRA; OTCQX: ABBRF) is pleased to announce that it has closed its previously announced
underwritten private placement financing (the “Offering”), including the exercise in full of the
underwriters’ option. Pursuant to the Offering, the Company issued an aggregate of 27,027,000 units
(the “Units”) for gross proceeds of $9,999,990.
Each Unit, priced at $0.37 per Unit (the “Issue Price”), consists of one common share in the capital of
the Company (each, 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 additional
Common Share at an exercise price of $0.50 until December 6, 2024.
The Company intends to use the net proceeds of t he Offering: (i) to complete the ongoing Phase III
drilling program on the Diablillos Project in the Salta province of Argentina; (ii) to commence and
complete a drilling program on the La Coipita Project in the San Juan province of Argentina; (iii) to
satisfy the Company ’s mineral interest commitments for the Diablillos Project and the La Coipita
Project; and (iv) for working capital purposes, as further described in the Company’s offering document
under the Listed Issuer Financing Exemption dated November 29, 2022.
The Offering was led by a syndicate of underwriters, with Eight Capital acting as lead underwriter and
sole bookrunner and including National Bank Financial Inc., Clarus Securities Inc., and Stifel GMP
(collectively, the “Underwriters”). In conn ection with the Offering, the Underwriters received an
aggregate cash commission in the amount of approximately $565,000 and an aggregate of 1,527,075
non-transferable broker warrants (each, a “Broker Warrant”). Each Broker Warrant entitles the holder
thereof to acquire one Unit at an exercise price of $0.37 until June 6, 2024.
The Offering was completed pursuant to the Listed Issuer Financing Exemption (as defined in National
Instrument 45-106 – Prospectus Exemptions), and the securities issued to purchasers in the Offering
are not subject to a hold period pursuant to applicable Canadian securities laws.
The Offering is subject to the final approval of the TSX Venture Exchange (the “Exchange”). The
securities issued to certain insiders of the Company in the Offering are subject to a four -month hold
period ending on April 7, 2023 in accordance with the policies of the Exchange.
Certain directors of the Company participated in the Offering and purchased an aggregate of 190,000
Units. The insider participation in the Offering constitutes a related party transaction pursuant to
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 contained in sections 5.5(a) and 5.7(1)(a) of MI 61- 101 in respect of related
party participation in the Offering as neither the fair market value (as determined under MI 61-101) of
the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it
involved related parties, exceeded 25% of the Company’s market capitalization as determined under
MI 61-101.
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Advisors
Dentons Canada LLP acted as counsel to the Compa ny. Borden Ladner Gervais LLP acted as
counsel to the Underwriters.
About AbraSilver
AbraSilver is an advanced-stage exploration company focused on rapidly advancing its 100%-owned
Diablillos silver-gold project in the mining-friendly Salta province of Argentina. The current Measured
and Indicated Mineral Resource estimate for Diablillos consists of 51.3 Mt grading 66g/t Ag and 0.79g/t
Au, containing approximately 109Moz silver and 1.3Moz gold, with significant further upside potential
based on recent exploration drilling. The Company is led by an experienced management team and
has long -term supportive shareholders including Mr. Eric Sprott. In addition, AbraSilver owns a
portfolio of earlier-stage copper-gold projects including the La Coipita copper-gold project in the San
Juan province of Argentina. AbraSilver is listed on the TSX -V under the symbol “ABRA” and in the
U.S. under the symbol “ABBRF”.
For further information please visit the AbraSilver Resource website at www.abrasilver.com, our
LinkedIn page at AbraSilver Resource Corp., and follow us on Twitter at www.twitter.com/abrasilver
Alternatively please contact:
John Miniotis, President and CEO
Tel: +1 416-306-8334
Cautionary Note Regarding Forward-Looking Information
This news release includes certain “forward-looking statements” under applicable Canadian securities
legislation, including statements related to the use of proceeds. Forward -looking statements are
necessarily based upon a number of estimates a nd assumptions that, while considered reasonable,
are subject to known and unknown risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed or implied by such forward-looking
statements. All statements that address future plans, activities, events or developments that the
Company believes, expects or anticipates will or may occur are forward -looking information. There
can be no assurance that such statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements. Accordingly, readers should not place
undue reliance on forward -looking statements. When considering this forward -looking information,
readers shoul d keep in mind the risk factors and other cautionary statements in the Company ’s
disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR
at www.sedar.com. The risk factors and other factors noted in the disclosure documents could cause
actual events or results to differ materially from those described in any forward -looking information.
The Company 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 required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accura cy of this
news release.