GR Silver Mining Announces Closing of $5.44 Million Brokered Private Placement Offering of Units
GR Silver Mining Announces Closing of $5.44
Million Brokered Private Placement Offering of
Units
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR
FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
Aug. 30, 2022
/CNW/ -
GR Silver Mining Ltd. ("GR Silver Mining"
or the
"Company")
(TSXV: GRSL) (OTCQB: GRSLF) (FRANKFURT: GPE) – is pleased to announce that
it has completed its previously announced (see news release dated
August 10, 2022
) best-efforts
brokered private placement offering (the "Offering"), issuing 36,263,000 units of the Company (the
"Units") at a price of
$0.15
per Unit (the "Issue Price") for aggregate gross proceeds of
$5,439,450
,
including 2,929,000 Units sold pursuant to the partial exercise of the option granted to the Agents
(as defined herein) pursuant to the Agency Agreement (as defined herein).
Each Unit consists of one common share in the capital of the Company (a "Common Share") and
one-half of one common share purchase warrant (each whole warrant, a "Warrant"). Each Warrant
is exercisable to acquire one Common Share for a period of 36 months following the closing of the
Offering at an exercise price of
$0.22
per Common Share.
Certain directors and officers of the Company (the "Insiders") participated in the Offering and
purchased an aggregate of 580,000 Units. Participation by Insiders in the private placement is
considered a "related party transaction" pursuant to Multilateral Instrument 61-101 – Protection of
Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the
requirements to obtain a formal valuation and minority shareholder approval in connection with the
Insiders' participation in the private placement in reliance of sections 5.5(a) and 5.7(a) of MI 61-101,
respectively, on the basis that participation in the Offering by the Insiders did not exceed 25% of the
fair market value of the Company's market capitalization The Company did not file a material
change report at least 21 days prior to the closing of the Offering as participation of the Insiders had
not been confirmed at that time.
The Company entered into an Agency Agreement dated
August 30, 2022
, with Beacon Securities
Limited as Lead Agent, and Echelon Wealth Partners Inc. (collectively, the "Agents"), pursuant to
which the Company (i) paid the Agents a cash commission totalling
$271,458
; and (ii) issued an
aggregate of 1,809,720 non-transferable broker warrants (the "Broker Warrants"), each of which is
exercisable for one Common Share at the Issue Price for a period of 36 months from the date of
closing of the Offering. The Agents were also paid a corporate finance fee in connection with the
Offering of
$50,000
and 339,000 Broker Warrants.
The net proceeds raised under the Offering will be used for working capital and general corporate
purposes.
The Offering remains subject to the final acceptance of the TSX Venture Exchange. All securities
issued under and in connection with the Offering are subject to a hold period in
Canada
expiring
December 31, 2022
.
The securities offered have not been registered under the U.S. Securities Act of 1933, as
amended, and may not be offered or sold in
the United States
absent registration or an
applicable exemption from the registration requirements. This press 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 State in which such offer, solicitation or sale would be unlawful.
About GR Silver Mining Ltd
.
GR Silver Mining is a Canadian-based,
Mexico
-focused junior mineral exploration company engaged
in cost-effective silver-gold resource expansion on its 100%-owned assets, located on the eastern
edge of the Rosario Mining District, in the southeast of Sinaloa State,
Mexico
. GR Silver Mining
controls 100% of two past producer precious metal underground and open pit mines, within the
expanded Plomosas Project, which includes the integrated San Marcial Area and
La Trinidad
acquisition. In conjunction with a portfolio of early to advanced stage exploration targets, the
Company holds 734 km2 of concessions containing several structural corridors totaling over 75 km in
strike length.
GR Silver Mining Ltd.
Eric Zaunscherb
Chairman & CEO
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable
Canadian securities legislation and information that are based on the beliefs of management and
reflect the Company's current expectations. When used in this press release, the words "estimate",
"project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the
negative of these words or such variations thereon or comparable terminology are intended to
identify forward-looking statements and information. Such statements and information reflect the
current view of the Company. Risks and uncertainties may cause actual results to differ materially
from those contemplated in those forward-looking statements and information. By their nature,
forward-looking statements involve known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements, or other future events, to be
materially different from any future results, performance or achievements expressed or implied by
such forward-looking statements.
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 press release.
SOURCE
GR Silver Mining Ltd.
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For further information:
Brenda Dayton, VP Corporate Communications, Telephone:
+1.604.417.7952, Email: [email protected]
CO: GR Silver Mining Ltd.
CNW 12:37e 30-AUG-22