Defiance Silver Announces C$7.0 Million Brokered Private Placement Financing
DEFIANCE SILVER ANNOUNCES C$7.0 MILLION BROKERED
PRIVATE PLACEMENT FINANCING
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION DIRECTLY, OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO
THE UNITED STATES
Vancouver, British Columbia--(Newsfile Corp. – August 18, 2020) - Defiance Silver Corp.
(TSX-V: DEF) (OTC: DNCVF) (FSE: D4E) (the "Company") is pleased to announce that it
has entered into an agreement with Red Cloud Securities Inc., as lead agent and sole
bookrunner (the "Lead Agent"), on its own behalf and, if applicable, on behalf of a
syndicate of agents (together with the Lead Agent, the "Agents") in connection with a
best efforts, private placement of up to 20,590,000 units of the Company (the "Units")
at a price of C$0.34 per Unit (the "Offering Price") for gross proceeds of up to
C$7,000,600 (the "Offering").
Each Unit will be comprised of one common share of the Company (a "Common
Share") and one half of one Common Share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant shall be exercisable to acquire one Common Share (a
"Warrant Share") at a price of C$0.48 per Warrant Share for a period of 24 months
from the closing of the Offering.
The Agents will have an option (the "Agents' Option") to offer for sale up to an
additional 8,825,000 Units at the Offering Price for additional gross proceeds of up to
C$3,000,500, which Agents' Option is exercisable, in whole or in part, at any time up to
48 hours prior to the closing of the Offering.
The Company intends to use the net proceeds from the Offering for exploration and
general working capital purposes.
The securities to be issued under the Offering will be offered by way of private
placement in each of the provinces of Canada and such other jurisdictions as may be
determined by the Company, in each case, pursuant to applicable exemptions from the
prospectus requirements under applicable securities laws.
The Offering is scheduled to close on or about the week of September 15, 2020, or
such date as agreed upon between the Company and the Lead Agent (the "Closing")
and is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Exchange. The Units to be issued
under the Offering will have a hold period of four months and one day from Closing.
The securities described herein have not been, and will not be, registered under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any
state securities laws, and accordingly, may not be offered or sold within the United
States except in compliance with the registration requirements of the U.S. Securities
Act and applicable state securities requirements or pursuant to exemptions therefrom.
This press release does not constitute an offer to sell or a solicitation to buy any
securities in any jurisdiction.
About Defiance Silver
Defiance Silver Corp.(TSXV: DEF) (OTC: DNCVF) (FSE: D4E) is an exploration company
advancing the district-scale San Acacio Deposit, located in the historic Zacatecas Silver
District and the 100% owned Tepal Gold/Copper Project in Michoacán state, Mexico.
Defiance is managed by a team of proven mine developers with a track record of
exploring, advancing and developing several operating mines and advanced resource
projects. Defiance's corporate mandate is to expand the San Acacio and Tepal projects
to become premier Mexican silver and gold deposits.
On behalf of Defiance Silver Corp.
“Chris Wright”
Chairman of the Board
For more information, please contact: Investor Relations at +1 917-563-3821 or via email at
www.defiancesilver.com
704 - 595 Howe Street
Vancouver, BC V6E 2K3
Cautionary Statement:
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
news release.
Certain statements in this news release are forward-looking and involve a number of risks and
uncertainties. Such forward-looking statements are within the meaning of the phrase ‘forward-looking
information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous
Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-
looking statements include estimates and statements that describe the Company’s future plans,
objectives or goals, including words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be identified by such terms as
“believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-
looking statements are based on assumptions and address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Although these statements are based on
information currently available to the Company, the Company provides no assurance that actual
results will meet management’s expectations. Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward-looking
information. Forward looking information in this news release includes, but is not limited to, the
anticipated size of the Offering, the Offering price, the anticipated closing date and the completion of
the Offering, the anticipated use of the net proceeds from the Offering, the receipt of all necessary
approvals, and the Company’s intentions regarding its objectives, goals or future plans and
statements. Factors that could cause actual results to differ materially from such forward-looking
information include, but are not limited to: an inability to complete the Offering on the terms or on
the timeline as announced or at all; and those risks set out in the Company’s public documents filed
on SEDAR. Although the Company believes that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable, undue reliance should not be placed
on such information, which only applies as of the date of this news release, and no assurance can be
given that such events will occur in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward-looking information, whether as a result of
new information, future events or otherwise, other than as required by law. No stock exchange,
securities commission or other regulatory authority has approved or disapproved the information
contained herein
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall
there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale
would be unlawful, including any of the securities in the United States of America. The securities have
not been and will not be registered under the United States Securities Act of 1933, as amended (the
“1933 Act”) or any state securities laws and may not be offered or sold within the United States or to,
or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless
registered under the 1933 Act and applicable state securities laws, or an exemption from such
registration requirements is available.