GR Silver Mining Announces Upsize to Bought Deal Financing
GR Silver Mining Ltd. [email protected]
999 West Hastings St., 9th Floor +1-604-202-3155
Vancouver, BC, V6C 2W2
May 7, 2020
GR Silver Mining Announces Upsize to Bought Deal Financing
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR
FOR DISSEMINATION IN THE UNITED STATES
Vancouver, BC – GR Silver Mining Ltd. (TSXV: GRSL, FRANKFURT: GPE, OTCQB: GLYXF) (“GR
Silver Mining” or the “Company”) – is pleased to announce that it has amended the terms of
its previously announced offering of units of the Company. Under the amended terms of the
Offering (as defined below), Beacon Securities Limited ( the “Lead Underwriter ”), as lead
underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively, the
“Underwriters”) has agreed to purchase, on a “bought deal” private placement basis,
26,000,000 units (“ Units”) of the Company at a price of $0.27 per Unit (the “ Issue Price”), for
aggregate gross proceeds to the Company of $7,020,000 (the “ Offering”). Each Unit will consist
of one common share in the capital of the Company and one -half of one common share
purchase warrant (each whole warrant, a “Warrant”). Each Warrant will be exercisable to
acquire one common share for a period of 12 months following closing of the Offer ing at an
exercise price of $0.40 per share.
The Company has granted the Underwriter s an option, exercisable by the Lead Underwriter on
behalf of the Underwriters, to purchase up to an additional 3,900,000 Units, for additional gross
proceeds of up to $1,053,000, exercisable in whole or in part at any time up to 48 hours prior to
the closing date of the Offering.
The Company intends to use the net proceeds of the Offering for working capital and general
corporate purposes.
The Offering is expected to close on or about May 28, 2020 and is subject to certain conditions
including, but not limited to, the receipt of all necessary approvals including the approval of the
TSX Venture Exchange and the applicable securities regulator y authorities. All securities issued
under the Offering will be subject to a hold period in Canada expiring four months and one day
from the closing date of the Offering.
In connection with the Offering, the Underwriter s will receive: (i) a cash commission of 7.0% of
the gross proceeds of the Offering , excluding up to a maximum of $1,000,000 gross proceeds
from the issuance of Units to persons identified by the Company pursuant to a President’s List
for which a commission of 4.0% of such gross proceeds is payable by the Company to the
Underwriters; and (ii) that number of non -transferable compensation options (the
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“Compensation Options”) as is equal to (a) 7.0% of the aggregate number of Units sold under
the Offering, excluding those Units sold in connection with the President’s List , and (b) 4.0% of
the aggregate number of Units sold under the Offering in conjunction with the President’s List .
Each Compensation Option is exercisable into one common share of the Company at the Issue
Price for a period of 12 months from the closing date of the Offering.
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 Ltd. (GRSL.V) is a Mexico -focused company engaged in cost -effective silver-
gold resource expansion on its key assets which lie on the eastern edge of the Rosario Mining
District, Sinaloa, Mexico.
PLOMOSAS SILVER PROJECT
GR Silver Mining own s 100% of the Plomosas Silver Project located near the historic mining
village of La Rastra, within the Rosario Mining District. The Project is a past -producing asset
where only one mine, t he P lomosas silver-gold-lead-zinc underground mine , operated from
1986 to 2001. The Project has an 8,515-hectare property position and is strategically located
within 5 km of the San Marcial Silver Project in the southeast of Sinaloa State, Mexico. The
Plomosas Project comprises six areas with an average of 100 surface and underground drill
holes in each area, geophysical and geochemical data covering most of the concession , and the
delineation of 16 exploration/drilling targets.
The 100% owned assets include all facilities and infrastructure including : access roads, surface
rights agreement, water use permit, 8,000 m of underground workings, water access, 60 km -
33 KV power line, offices, shops, 120 -person camp, infirmary, warehouses and assay lab
representing approximately US$30m of previous capital investments. The previous owner s
invested approximately US$18 million in exploration.
The silver and gold mineralization on this Project display the alteration, textures, mineralogy
and deposit geometry characteristics of a low sulphidation epithermal silver -gold-base metal
vein/breccia mineralized system. Previous exploration was focused on Pb-Zn-Ag-Au polymetallic
shallow mineralization, hosted in NW -SE structures in the vicinity of the Plomosas mine. The E -
W portion of the mineralization and extensions for the main N-S Plomosas fault remains under-
explored. The Plomosas Silver Project has more than 500 recent and historical drill holes in six
areas – Plomosas Mine, San Juan, La Colorada , Yecora, San Francisco and El Saltito. These drill
holes represent an extensive database allowing the Company to advance towards resource
estimation and potential project development in the near future.
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SAN MARCIAL PROJECT
San Marcial is a near -surface, high-grade silver-lead-zinc open pit -amenable project. GR Silver
Mining is currently expanding its NI 43 -101 resource estimate at the San Marcial Project, which
contains 36 Moz AgEq ( Indicated) + 11 Moz AgEq (Inferred), by defining new high -grade gold
and silver targets along the project’s 6 km mineralized trend. GR Silver Mining is the first
company to conduct exploration at San Marcial in over 10 years. The NI 43 -101 resource
estimate (San Marcial Project – Resource Estimation and Technical Report) was completed by
WSP Canada Inc. on March 26, 2019.
Plomosas and San Marcial collectively represent a geological setting resembling the
multimillion-ounce San Dimas Mining District which has historically produced more than 620
Moz silver and 11 Moz gold over a period of more than 100 years.
OTHER PROJECTS
GR Silver Mining’s other projects are situated in areas attractive for future discoveries and
development in the same vicinity of Plomosas and San Marcial in the Rosario Mining District.
Mr. Marcio Fonseca
P. Geo, President & CEO
GR Silver Mining Ltd.
For Further Information:
Contact: +1 (604) 202 3155
Email: [email protected]
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this press release.
Disclaimer for Forward-Looking Information
This press release contains forward -looking statements and information that are based on the beliefs of management and
reflect the Company’s current expectations. Forward-looking statements and forward -looking information include, but are not
limited to, statements with respect to the timing and completion of the Offering, the use of proceeds of the Offering and the
availability of regulatory approvals for the Offer ing. Except for statements of historical fact relating to the Company, certain
information contained herein constitutes forward -looking statements. 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 othe r 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. The forward -looking statements and information contained in this
press release are made as of the date hereof, and the Company is not obligated to update or revise any forward -looking
information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.
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Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward -
looking information. The foregoing statements expressly qualify any forward -looking statements and information contained
herein.