GR Silver Mining Upsizes Bought Deal Financing to $8.1 Million
GR Silver Mining Ltd. [email protected]
999 West Hastings St., 9th Floor +1-604-202-3155
Vancouver, BC, V6C 2W2
May 8, 2020
GR Silver Mining Upsizes Bought Deal Financing to $8.1 Million
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 further increased the size
of its previously announced brokered private placement offering (“ Offering”) of units (“Units”)
in order to accommodate participation by First Majestic Silver Corp. (TSX: FR , NYSE: AG) , an
existing major shareholder of the Company, in the Offering.
Under the amended terms of the Offering, 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,
30,000,000 Units of the Company at a price of $0.27 per U nit, for aggregate gross proceeds to
the Company of $ 8,100,000. As previously announced, e ach 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 Offering 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 regulatory 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.
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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 th e 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 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, t he 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$ 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 sul phidation 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 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
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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 othe r 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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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, the participation by
First Majestic Silver Corp. in the Offering, and the availability of regulatory approvals for the Offering. 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 f uture 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.