Blackrock Silver Announces Closing of $10.35 Million Bought Deal Public Offering, Led by Investment from Eric Sprott
Blackrock Silver Announces Closing of $10.35
Million Bought Deal Public Offering, Led by
Investment from Eric Sprott
Vancouver, British Columbia--(Newsfile Corp. - May 29, 2024) -
Blackrock Silver Corp. (TSXV: BRC)
("
Blackrock
" or the "
Company
") is pleased to announce that it has completed its previously announced
"bought deal" public offering of 32,343,750 units of the Company (the "
Units
") at a price of $0.32 per
Unit for aggregate gross proceeds to the Company of $10,350,000 (the "
Offering
"). The completed
Offering includes the full exercise of the over-allotment option by the Underwriters (as defined herein) for
the sale of 4,218,750 Units for proceeds of $1,350,000. Eric Sprott, through 2176423 Ontario Ltd, a
corporation beneficially owned by him, participated in the Offering with a lead order of $4,000,000.
Each Unit consists of one common share of the Company (a "
Common Share
") and one-half of one
Common Share purchase warrant of the Company (each whole warrant, a "
Warrant
"). Each Warrant
entitles the holder thereof to purchase one Common Share at an exercise price of $0.48 per Common
Share at any time on or before May 29, 2026.
Andrew Pollard, President & Chief Executive Officer of Blackrock, commented: "With a significant lead
order from Eric Sprott, and the participation of a number of new as well as existing shareholders,
proceeds from this Offering will see the drills return to Tonopah West this summer for our much
anticipated resource conversion and expansion program.
Roughly 20,000 metres (m) of drilling (8,000m
of reverse circulation and 12,000m of core) is planned to convert inferred resources to M&I (measured &
indicated) on our Merten and Bermuda veins that run along the southern edge of our DPB deposit.
The
program will crystalize further expansion potential across the 1km vein corridor in an effort to bridge the
gap between the DPB and NW Step-out areas."
The net proceeds from the Offering will be used for exploration, resource expansion and conversion
drilling, working capital and general corporate purposes.
The Offering was completed pursuant to an underwriting agreement dated May 23, 2024 entered into
among the Company and a syndicate of underwriters led by Research Capital Corporation as the lead
underwriter and sole bookrunner, on behalf of a syndicate of underwriters, including Canaccord Genuity
Corp., Red Cloud Securities Inc. and Ventum Financial Corp. (collectively, the "
Underwriters
").
The Offering was completed pursuant to a prospectus supplement of the Company dated May 23, 2024
(the "
Prospectus Supplement
") to the Company's short form base shelf prospectus dated August 4,
2023 (the "
Base Shelf Prospectus
"), in each of the provinces of Canada (except Québec), and in the
United States on a private placement basis pursuant to an exemption from the registration requirements
of the U.S. Securities Act of 1933, as amended (the "
U.S. Securities Act
") and applicable state
securities laws and other jurisdictions. The Offering remains subject to the final approval of the TSX
Venture Exchange (the "
TSX-V
"). Copies of the Prospectus Supplement and the Base Shelf Prospectus
are available under the Company's profile on SEDAR+ at
www.sedarplus.ca
.
Mr. Eric Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him,
acquired 12,500,000 Units for $0.32 per Unit for a total consideration of $4,000,000. Prior to the
Offering, Mr. Sprott beneficially owned or controlled 12,631,819 Common Shares representing
approximately 5.6% of the outstanding Common Shares on a non-diluted basis. Following the
completion of the Offering, Mr. Sprott beneficially owns and controls 25,131,819 Common Shares and
6,250,000 Warrants representing approximately 9.8% of the outstanding Common Shares on a non-
diluted basis and 12.0% 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 conditions, reformulation of plans and/or other
relevant factors.
A copy of Sprott's early warning report will appear on Blackrock'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).
In connection with the Offering, the Company paid to the Underwriters a cash commission of $618,177
and issued to the Underwriters 1,931,805 Common Share purchase warrants (the "
Broker Warrants
").
Each Broker Warrant entitles the holder thereof to acquire one Common Share at a price of $0.32 per
Common Share at any time on or before May 29, 2026.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United
States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to
qualification or registration under the securities laws of such jurisdiction. The securities being offered
have not been, nor will they be, registered under the U.S. Securities Act, and such securities may not
be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent
registration or an applicable exemption from U.S. registration requirements and applicable U.S. state
securities laws.
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.
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 more information, please contact:
Andrew Pollard, President & Chief Executive Officer
Blackrock Silver Corp.
Phone: 604 817-6044
Email:
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain statements and information that constitute forward-looking
information within the meaning of applicable Canadian securities laws. All statements in this news
release, other than statements of historical facts are forward-looking statements. Such forward-looking
statements and forward-looking information specifically include, but are not limited to, statements that
relate to the use of proceeds from the Offering, including the Company's planned resource conversion
and expansion program at its Tonopah West project, and the receipt of final approval from the TSX-V.
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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STATES
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