Impact Silver Announces Closing of an Oversubscribed C$7.1 Million First Tranche Non-Brokered Private Placement Financing
Impact Silver Announces Closing of an
Oversubscribed C$7.1 Million First Tranche
Non-Brokered Private Placement Financing
Vancouver, British Columbia--(Newsfile Corp. - May 21, 2024) - IMPACT Silver Corp. (TSXV: IPT) (OTC
Pink: ISVLF) (FSE: IKL) ("
IMPACT
" or the "
Company
") is pleased to announce that it has closed the
first tranche of the non-brokered private placement financing originally announced of up to C$6,200,000
on April 30
th
, 2024 and subsequently increased up to C$8,200,000 on May 13
th
, 2024 (the "
Offering
").
The Offering is being completed pursuant to the listed issuer financing exemption ("
LIFE
") of National
Instrument 45-106
Prospectus Exemptions
("
NI 45-106
") and other private placement exemptions under
NI 45-106.
Under the first tranche the Company has received gross proceeds of C$2,936,587 from the issuance of
10,487,812 LIFE units (the "
LIFE Units
") at C$0.28 per LIFE Unit and gross proceeds of C$4,192,071
from the issuance of 15,526,190 units (the "
Standard Units
") at C$0.27 per Standard Unit for
aggregate gross proceeds of C$7,128,659. The second tranche of the Offering is anticipated to close
on or before May 28
th
, 2024.
Each LIFE Unit consists of one common share of the Company and one half common share purchase
warrant (each whole such warrant, a "
Warrant
"), with each Warrant entitling the holder thereof to acquire
one common share of the Company (a "
Warrant Share
") at a price of C$0.34 per Warrant Share for a
period of 24 months from its date of issue. Each Standard PP Unit consists of one common share of the
Company and one full Warrant, with each Warrant entitling the holder thereof to acquire one Warrant
Share at a price of C$0.34 per Warrant Share for a period of 24 months from its date of issue.
The Company intends to use the proceeds from the Offering to accelerate exploration activity at its
Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, further develop its prolific
silver assets at its legacy Royal Mines of Zacualpan district, as well as invest in operational
improvements to improve productivity and throughput as the price of silver nears 52-week highs.
Exploration activities include sampling, target definition, and drilling with the intention of expanding the
existing JORC mineral resource at Plomosas, where only 600m of the 6-kilometre-long structure has
been tested.
Frederick Davidson, CEO and President of the Company, comments, "With silver rallying to over
US$30/ounce last week and going higher not to mention strong zinc prices amidst a rally in base metals,
IMPACT Silver is well positioned to benefit from production at Plomosas, Guadalupe, and high potential
exploration programs in 2024."
As mentioned, a portion of the Offering was made pursuant to the listed issuer financing exemption
under Part 5A of NI 45-106 (the "
LIFE Exemption
"). The securities sold under the LIFE Exemption are
not subject to a hold period in accordance with applicable Canadian securities laws. A copy
of
the
offering
document
under
the
LIFE
Exemption
dated
April 5, 2024,
is
available
electronically
on
SEDAR+
(
www.sedarplus.ca
)
under
the
Company's
issuer
profile. The remaining portion of the Offering was made
pursuant to certain private placement exemptions under NI 45-106. These securities will be subject to a
statutory hold period of four months and one in accordance with applicable Canadian securities laws.
The Offering remains subject to final acceptance by the TSX Venture Exchange.
In connection with the Offering, the Company paid an aggregate of C$317,943 in finder's fees and
issued 1,158,562 finder's warrants (each, a "
Finder's Warrant
") to certain finders. Each Finder's
Warrant entitles the holder thereof to purchase one common share of the Company at a price of C$0.34
per share for a period of 24 months from its date of issue.
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 IMPACT SILVER
IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.
Royal Mines of Zacualpan Silver-Gold District:
IMPACT owns 100% of the 211 km
2
Zacualpan
project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe
processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to
an open pit silver mine with an NI 43-101 inferred mineral resource of over 4.5 million oz silver, 48 million
lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details and QP
statement); Company engineers are reviewing Capire for a potential restart of operations. Over the past
18 years, IMPACT has placed multiple zones into commercial production and produced over 12 million
ounces of silver, generating revenues over C$261 million.
Plomosas Zinc-Lead-Silver District:
IMPACT has begun preliminary mining and processing
operations at its 100% owned Plomosas high-grade zinc mine in northern Mexico where upgrades to
facilities and equipment continue. Exploration potential at Plomosas is exceptional with only 600m of the
6km-long structure have seen modern exploration. This is in addition to other exploration targets on the
3,019-hectare property including untested copper-gold targets with indications of high-grade material
from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate
replacement deposits in the world.
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Eng., is a "Qualified Person" within the meaning of NI 43-101 and has approved
the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or
(778) 887 6489 Direct
Neither 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
release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating
to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and
information currently available to IMPACT management. All statements, other than statements of
historical facts, included herein, including, without limitation, statements relating to future silver prices,
interpretation of drill results, future work plans,
proceeds received and use of funds, the potential of the
Company's projects, and potential and plans for the Plomosas project, are forward looking statements.
Forward-looking information is often, but not always, identified by the use of words such as "seek",
"anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends",
"believe", "potential", and similar expressions, or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will"
be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect
to the expected use of proceeds of the Offering and whether the second tranche of the Offering will be
completed by the date set out above or at all.
Such forward-looking information involves known and unknown risks and assumptions, including with
respect to, without limitations, exploration and development risks, expenditure and financing
requirements, title matters, operating hazards, metal prices, political and economic factors, competitive
factors, general economic conditions, relationships with vendors and strategic partners, governmental
regulation and supervision, seasonality, technological change, industry practices, and one-time events.
Should any one or more risks or uncertainties materialize or change, or should any underlying
assumptions prove incorrect, actual results and forward-looking statements may vary materially from
those described herein. IMPACT does not assume the obligation to update any forward-looking
statement, except as required by law.
The Company's decision to place a mine into production, expand a mine, make other production related
decisions or otherwise carry out mining and processing operations, is largely based on internal non-
public Company data and reports based on exploration, development and mining work by the
Company's geologists and engineers. The results of this work are evident in the discovery and building
of multiple mines for the Company and in the track record of mineral production and financial returns of
the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its
production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary
economic assessments or feasibility studies, and historically such projects have increased uncertainty
and risk of failure.
303-543 Granville Street Telephone
(604) 664-7707
Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
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