Blackrock Silver Announces $3.0 Million Bought Deal Financing
Blackrock Silver Announces $3.0 Million
Bought Deal Financing
Vancouver, British Columbia--(Newsfile Corp. - January 17, 2024) - Blackrock Silver Corp. (TSXV:
BRC) (the "
Company
" or "
Blackrock
") is pleased to announce that it has entered into an agreement
with Red Cloud Securities Inc. to act as lead underwriter and sole bookrunner on behalf of a syndicate of
underwriters (collectively, the "
Underwriters
"), pursuant to which the Underwriters have agreed to
purchase for resale 15,000,000 units of the Company (each, a "
Unit
") at a price of C$0.20 per Unit (the
"
Offering Price
") on a "bought deal" basis for gross proceeds of C$3,000,000 (the "
Offering
").
Each Unit will consist of one common share of the Company (each, a "
Common Share
") and one half of
one Common Share purchase warrant (each whole warrant, a "
Warrant
"). Each whole Warrant shall
entitle the holder to purchase one Common Share of the Company at a price of C$0.30 at any time on or
before that date which is 36 months after the closing date of the Offering.
The Company has granted to the Underwriters an option exercisable at the Offering Price for a period of
30 days after and including the closing date of the Offering, to purchase for resale up to an additional
15% of the number of Units sold under the Offering to cover over allotments, if any, and for market
stabilization purposes. The Offering is expected to close on or about January 26, 2024 (the "
Closing
Date
") and is subject to certain conditions including, but not limited to, the receipt of all necessary
regulatory approvals, including the approval of the TSX Venture Exchange.
The net proceeds raised under the Offering will be used by the Company to complete the final option
payment on the Company's flagship Tonopah West project ("
Tonopah West
") in Nevada, after which
the Company will own 100% of Tonopah West, continue with metallurgical characterization, engineering
evaluation, and hydrological assessment, as well as for general working capital and corporate purposes.
The Units will be sold by way of a prospectus supplement to be filed in all of the provinces of Canada
except Québec to supplement the short form base shelf prospectus of the Company dated August 4,
2023. The Units may also be sold in the United States on a private placement basis pursuant to one or
more exemptions from the registration requirements of the United States Securities Act of 1933, as
amended (the "
U.S. Securities Act
") and in such other jurisdictions outside of Canada and the United
States, in each case in accordance with all applicable laws provided that no prospectus, registration
statement or similar document is required to be filed in such jurisdiction.
The securities being offered pursuant to the Offering have not been, nor will they be, registered under the
U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States
or to, or for the account or benefit of, U.S. persons 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 any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Blackrock Silver Corp.
Backed by gold and silver ounces in the ground, Blackrock is a junior precious metal focused exploration
company driven to add shareholder value via the drill bit. With 6.12 million tonnes grading 508.5 g/t silver
equivalent
[1]
at its Tonopah West project, and a new bonanza-grade gold discovery at its Silver Cloud
project, the Company has a proven track record of exploration success. In addition to its gold and silver
project portfolio, the Company is credited with a lithium discovery, the Tonopah North project, which is
under option to a lithium exploration group.
Anchored by a seasoned Board of Directors, the Company is
focused on its 100% controlled Nevada portfolio of properties consisting of low-sulphidation, epithermal
gold and silver mineralization located along the established Northern Nevada Rift in north-central Nevada
and the Walker Lane trend in western Nevada.
For further information, please contact:
Andrew Pollard, President & Chief Executive Officer
Blackrock Silver Corp.
Phone: 604 817-6044
Email:
Forward-Looking and Cautionary Statements
This news release contains "forward-looking statements" within the meaning of Canadian securities
legislation. Such forward-looking statements concern, without limitation, the completion and Closing
Date of the Offering and the anticipated use of proceeds therefrom. 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; accuracy of assay results; geological interpretations from drilling results, timing and amount
of capital expenditures; performance of available laboratory and other related services; future
operating costs; and the historical basis for current estimates of potential quantities and grades of
target zones. The actual results could differ materially from those anticipated in these forward-looking
statements as a result of
risk factors, including the timing and content of work programs; results of
exploration activities and development of mineral properties; the interpretation and uncertainties of
drilling results and other geological data; receipt, maintenance and security of permits and mineral
property titles; environmental and other regulatory risks; project costs overruns or unanticipated costs
and expenses; availability of funds; failure to delineate potential quantities and grades of the target
zones based on historical 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.
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 accuracy of this
release.
[1]
Technical information relating to the Tonopah West project is based on and derived from the National
Instrument 43-101 technical report prepared for Blackrock entitled "Technical Report for Updated
Estimate of Mineral Resources, Tonopah West Silver-Gold Project, Nye and Esmeralda Counties,
Nevada, USA" effective October 6, 2023 and dated November 8, 2023 authored by Jeffrey Bickel,
C.P.G. (the "
Technical Report
"). The Technical Report outlines 6.12 million tonnes at a block diluted
grade of 242 grams per tonne (g/t) silver (Ag) and 2.9g/t gold (Au) for a total inferred mineral resource of
47,738,000 ounces Ag and 570,000 ounces Au, or 508.5 g/t silver equivalent (AgEq) for 100.04 million
oz AgEq. AgEq equivalent grade is based on silver and gold prices of US$22/ounce and
US$1,850/ounce, respectively, and recoveries for silver and gold of 87% and 95%, respectively.
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