Silver One Closes Oversubscribed Financing of $9.5 Million Eric Sprott Increases Ownership in Silver One
Silver One Closes Oversubscribed Financing
of $9.5 Million
Eric Sprott Increases Ownership in Silver One
Vancouver, British Columbia--(Newsfile Corp. - July 16, 2020) -
Silver One Resources Inc. (TSXV:
SVE) (OTCQX: SLVRF) (FSE: BRK1)
("Silver One") is pleased to announce that it has closed its
previously announced private placement financing by issuing 21,111,111 units ("Units") at a price of
$0.45 per Unit for gross proceeds of $9.5 million (the "Financing").
Greg Crowe, President and CEO, commented: "This is the third time Eric Sprott has taken a position
in the company.
We are very appreciative of his ongoing support.
With a treasury of over C$ 14
million, Silver One is very well positioned to advance its 3 high-priority silver projects in Nevada and
Arizona.
Exploration programs are being planned and should commence in the coming weeks."
Each Unit is comprised of one common share and one-half of one common share purchase warrant
("Warrant"), with each whole Warrant entitling the holder to purchase one additional common share at
$0.65 per share for a period of three (3) years from the date of issue.
All securities issued in connection with the Financing will be subject to restrictions on resale until
November 15, 2020. The Company paid finders a fee of $67,730.28 and 125,660 finders warrants.
Proceeds of the financing will be used for ongoing exploration and drilling activities at the Candelaria
Silver Project, additional exploration activities to further define the high-grade silver-gold-copper vein
systems at the Company's Cherokee Project and to explore for very high-grade silver targets at the
recently acquired Phoenix Silver project.
It will also be used for potential silver focused acquisitions and
for working capital purposes.
Eric Sprott Increases Ownership
Mr. Sprott, through 2176423 Ontario Ltd., a corporation that is beneficially owned by him,
acquired
11,111,111 Common Shares of Silver One and 5,555,556 Warrants (which terms restrict the holder
acquiring 20% or more of the Common Shares without obtaining certain approvals of the TSX Venture
Exchange) pursuant to the Financing for total consideration of $5,000,000. Prior to the Financing, Mr.
Sprott beneficially owned or controlled 22,000,000 Common Shares of Silver One and 11,000,000
share purchase warrants. As a result of the Financing, Mr. Sprott beneficially owns or controls
31,111,111 Common Shares and 16,555,556 Warrants of the Company representing approximately
16.97% of the issued and outstanding Common Shares of Silver One on a non-diluted basis and
approximately 23.46% of the issued and outstanding Common Shares of Silver One on a partially diluted
basis assuming the exercise of the warrants.
The Units were acquired by Sprott for investment purposes. Mr. Sprott has a long-term view of the
investment and may acquire additional securities of Silver One including on the open market or through
private acquisitions or sell securities of Silver One including on the open market or through private
dispositions in the future depending on market conditions, reformulation of plans and/or other relevant
factors.
A copy of Sprott's early warning report will appear on Silver One's profile on SEDAR and may also be
obtained by calling (416) 945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower,
Toronto, Ontario M5J 2J2)
This news release does not constitute an offer to sell, or solicitation of an offer to buy, nor will there be
any sale of any of the securities offered in any jurisdiction where such offer, solicitation or sale would be
unlawful, including the United States of America. The securities being offered as part of the Offering 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 in the
United States except in compliance with the registration requirements of the U.S. Securities Act and any
applicable state securities laws, or pursuant to available exemptions therefrom.
About Silver One
Silver One is focused on the exploration and development of quality silver projects.
The Company holds an option to acquire a 100%-interest in its flagship project, the past-producing
Candelaria Silver Mine, Nevada.
Potential reprocessing of silver from the historic leach pads at
Candelaria is being investigated.
Additional opportunities lie in previously identified high-grade silver
intercepts down-dip and the possibility of increasing the substantive silver mineralization along-strike
from the two past-producing open pits.
The Company has staked 636 lode claims and entered into a Lease/Purchase Agreement to acquire
five patented claims on its Cherokee project located in Lincoln County, Nevada, host to multiple silver-
copper-gold vein systems traced to date for over 12 km along-strike.
The property also has potential for
limestone related polymetallic plus silver and gold and/or other intrusive related systems at depth.
Silver One holds an option to acquire a 100% interest in the Silver Phoenix Project. The Silver Phoenix
Project is a very high-grade native silver prospect that lies within the "Arizona Silver Belt", immediately
adjacent to the prolific copper producing area of Globe, Arizona.
In addition, the Company also holds a 100% interest in three significant silver assets located in Mexico -
Peñasco Quemado, Sonora; La Frazada, Nayarit; and Pluton, Durango.
For more information, please contact:
Silver One Resources Inc.
Gary Lindsey
Phone: (720) 273-6224
Email:
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements reflect management's current
estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Silver
One cautions that all forward looking statements are inherently uncertain and that actual performance
may be affected by a number of material factors, many of which are beyond Silver One's control. Such
factors include, among other things: risks and uncertainties relating to Silver One's limited operating
history, ability to obtain sufficient financing to carry out its exploration and development objectives on its
mineral properties, obtaining the necessary permits to carry out its activities and the need to comply with
environmental and governmental regulations. Accordingly, actual and future events, conditions and
results may differ materially from the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required under applicable securities legislation,
Silver One undertakes no obligation to publicly update or revise forward-looking information.
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THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
NOT FOR DISTRIBUTION IN THE U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE
U.S.
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