Silver Valley Metals Announces Financing - Early Warrant Exercise Incentive Program
Silver Valley Metals Announces Financing - Early Warrant Exercise
Incentive Program
VANCOUVER, BC
,
June 13, 2023
/CNW/ - Silver Valley Metals Corp. (TSXV: SILV) (OTCQB: SVMFF) ("Silver Valley" or the "Company"), a
brownfields exploration Company with two potential high impact projects that comprise lithium - potassium (
sulphate of potash
) located in
Zacatecas
and
San Luis Potosi, Mexico
and silver-zinc-lead located in north
Idaho, USA
respectively, is pleased to announce that it will make an
application to the TSX Venture Exchange (the "Exchange") for approval of the implementation of a proposed early warrant exercise incentive
program (the "Program") intended to encourage the early exercise of up to 12,897,114 outstanding warrants (the "Eligible Warrants") of the
Company.
The Program will commence on the date of receipt of conditional acceptance by the Exchange and will expire at
4:00 p.m.
(PDT)
14 days
thereafter
(the "Program Expiry Date"). The Company feels the Program will fairly reward the investors of the most recent financing for their
patience during this volatile year, allowing the Company to keep the share float within the current shareholder base and views this as the least
dilutive option at this time.
The Eligible Warrants were issued by the Company pursuant to a private placement financing completed on
January 3
, 2023. The Eligible
Warrants are exercisable to acquire one common share of the Company at a price of
$0.15
per share, with 9,297,114 Eligible Warrants expiring
November 17, 2024
and 3,600,000 Eligible Warrants expiring
January 3
, 2025.
To encourage the early exercise of the Eligible Warrants, the Company is seeking approval from the Exchange to an amendment to the terms of
the Eligible Warrants to enable the warrant holders to receive an Incentive Warrant (as defined and described below) for each Eligible Warrant
exercised on or prior to
4:00 p.m. (PDT)
on the Program Expiry Date at the price of
$0.11
per Eligible Warrant.
To be eligible for the Program, the holder of the Eligible Warrants must deliver the following documents to the Company on or prior to
4:00 p.m.
on the Program Expiry Date,
14 days following conditional acceptance by the Exchange
, as referenced above:
1
.
A duly completed and executed Subscription Form, in the form as attached as Schedule "B" to the Eligible Warrant Certificate;
2
.
The original certificate representing the Eligible Warrants being exercised (an electronic copy is acceptable);
3
.
The applicable aggregate exercise price payable to the Company; and
4
.
A duly completed and executed exemption certificate, the form of which will be provided to warrants holders by the Company.
Subject to the receipt of Exchange approval, each holder of an Eligible Warrant who elects to exercise at
$0.15
on or prior to
4:00 p.m. (PDT
on
the Program Expiry Date will receive:
1
.
the common shares in the capital of the Company to which they are otherwise entitled under the terms of the Eligible Warrants; and
2
.
and one common share purchase warrant of the Company (the "Incentive Warrant") entitling the holder to acquire an additional common
share of the Company at a price of
$0.11
per share, or such other exercise price as may be acceptable to the Exchange, for a period of 24
months from the date of issuance of the Incentive Warrants. The Incentive Warrants and any shares issued on exercise thereof will be
subject to a 4-month hold period from the date of issuance of the Incentive Warrants.
On receipt of conditional approval from the Exchange, the Company will issue a further news release. Terms and conditions of the proposed
Program will be delivered via email to all holders of the Eligible Warrants.
To the extent that holders of Eligible Warrants take advantage of the opportunity to exercise their Eligible Warrants early, proceeds will be used
to complete the phase 2 exploration campaign at the Ranger-Page project including a multi-kilometre trenching program, numerous geochemical
surveys including soil sampling, rock chip and channel sampling, and mapping; to maintain its lithium - sulphate of potash (Li-SOP) project /
deposit(s) in
Mexico
, including financing the legal negotiation regarding the lithium aspect of its deposits which the Company anticipates being
resolved in the coming months; project option payment for the Ranger-Page project; and general working capital.
Directors or Officers of the Company own or control less than 5% of the Eligible Warrants. The Company is not aware of any potential new
insider position that would be created upon the exercise of the Placement Warrants nor the Incentive Warrants.
The securities being offered will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold
within
the United States
absent registration or an exemption from the registration requirements. This news release does not constitute an offer to
sell or solicitation of an offer to buy any of the securities in the United States.
On behalf of the Board of Directors of Silver Valley Metals Corp.
"Brandon Rook"
Brandon Rook
, President & CEO, Director
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY
OF THIS RELEASE.
The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking
statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet
determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or
performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety
of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including,
without limitation: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to the outcome of
legal proceedings; political and regulatory risks associated with mining and exploration; risks related to the maintenance of stock exchange
listings; risks related to environmental regulation and liability; the potential for delays in exploration or development activities or the completion of
feasibility studies; the uncertainty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and
continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the potential for unexpected costs
and expenses; results of prefeasibility and feasibility studies, and the possibility that future exploration, development or mining results will not be
consistent with the Company's expectations; risks related to commodity price fluctuations; and other risks and uncertainties related to the
Company's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-
looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward-looking statements
are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or
circumstances. Actual events or results could differ materially from the Company's expectations or projections.
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SOURCE
Silver Valley Metals Corp.
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For further information:
Please contact us at: 604-800-4710, [email protected]
CO: Silver Valley Metals Corp.
CNW 08:00e 13-JUN-23