GR Silver Mining Completes $9,153,000 Bought Deal Financing
GR Silver Mining Completes $9,153,000
Bought Deal Financing
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
/
VANCOUVER, BC
,
June 18, 2020
/CNW/ -
GR Silver Mining Ltd.
(TSXV: GRSL) (FRANKFURT:
GPE) (OTCQB: GRSLF)
("GR Silver Mining" or the "Company")
– is pleased to announce that it
has completed its previously announced bought deal private placement (the "
Offering
") of an
aggregate of 33,900,000 units of the Company (the "
Units
") at a price of
$0.27
per Unit (the "
Issue
Price
") for gross proceeds of
$9,153,000
, which included the exercise of the underwriters' option in
full. Each Unit consists 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 is exercisable to
acquire one common share of the Company at an exercise price of
$0.40
per share for a period of
12 months from the closing date of the Offering.
The Offering was led by Beacon Securities Limited as lead underwriter and sole bookrunner on
behalf of a syndicate of underwriters including Raymond James Ltd., Canaccord Genuity Corp., and
Pollitt & Co. Inc. (collectively, the "
Underwriters
").
The Company intends to use the net proceeds of the Offering to fund resource expansion and drilling
at the Plomosas and San Marcial projects in
Sinaloa, Mexico
, and for working capital and general
corporate purposes.
The Offering constituted a related party transaction within the meaning of Multilateral Instrument 61-
101 ("
MI 61-101
") as First Majestic Silver Corp. (TSX: FR, NYSE: AG), an existing major
shareholder of the Company, subscribed for an aggregate of 4,000,000 Units. The Company is
relying on the exemptions from the valuation and minority shareholder approval requirements of MI
61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the
participation in the Offering by the insider does not exceed 25% of the market capitalization of the
Company, as determined in accordance with MI 61-101.
In connection with the Offering, the Underwriters received a cash commission totaling
$636,660
and
an aggregate of 2,358,000 non-transferable broker warrants (the "
Broker Warrants
"). Each Broker
Warrant 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.
All securities issued under and in connection with the Offering are subject to a hold period in
Canada
expiring
October 19
, 2020.
GR Silver Mining President and CEO,
Marcio Fonseca
, commented:
"With the closing of this
oversubscribed bought deal financing, GR Silver Mining now has a solid cash position on its balance
sheet, placing the Company in a strong position to continue drilling activities in the Plomosas and San
Marcial Project. The Company now intends to bring additional drill rigs to the sites to continue drilling
not only on the 6 areas with recent and historical drill holes but also in the multiple targets with
evidence of epithermal veins inside both projects. The Company has been operating safely in the last
3 months carrying out surface and underground exploration activities at both projects, in accordance
with Mexican authorities guidelines, with no impact of the COVID-19 at its operations in
Mexico
".
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. 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 owns 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, the Plomosas 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$30 million
of previous capital investments. The previous owners 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.
SAN MARCIAL PROJECT
San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project. GR Silver
Mining is currently drilling at the San Marcial Project, which contains 36 Moz AgEq (Indicated) + 11
Moz AgEq (Inferred), exploring recently defined 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 18, 2019
and
amended on
June 10, 2020
.
Plomosas and San Marcial collectively represent a geological setting resembling the multimillion-
ounce San Dimas Mining District which has historically produced more than 600 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.
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 use of proceeds of the Offering and the potential for resource expansion. 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 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. 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. 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.
SOURCE
GR Silver Mining Ltd.
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For further information:
+1 (604) 202 3155, Email: [email protected]
CO: GR Silver Mining Ltd.
CNW 12:17e 18-JUN-20