Silver Storm Closes First Tranche of Brokered Life Financing FOR Gross Proceeds of $10,541,050, Including Investment BY Eric Sprott
NEWS RELEASE
/THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR
DISSEMINATION IN THE UNITED STATES/
SILVER STORM CLOSES FIRST TRANCHE OF BROKERED LIFE FINANCING
FOR GROSS PROCEEDS OF $10,541,050, INCLUDING INVESTMENT BY ERIC SPROTT
Toronto, Ontario, June 5, 2025: Silver Storm Mining Ltd. (“Silver Storm” or the "Company") (TSX.V:
SVRS | FSE: SVR), is pleased to announce that it has closed the first tranche (the “First Tranche”) of
its previously announced best efforts brokered private placement for total gross proceeds of
$10,541,050 (the “ Offering”), which includes the partial exercise of the agents’ option. Under the
Offering, the Company sold 81,085,000 units of the Company (each, a “Unit”) at a price of $0.13 per
Unit (the “Offering Price”). Red Cloud Securities Inc. is acting as lead agent and bookrunner for the
Offering and Ventum Financial Corp. is acting as co-agent (collectively, the “Agents”). The Offering
was originally announced on June 20, 2025, and subsequently updated on June 29, 2025, and June
30, 2025.
The First Tranche included a $1,001,000 investment from current significant shareholder by Eric
Sprott, through 2176423 Ontario Ltd., a corporation which is beneficially owned by him.
Each Unit consists of one common share of the Company (each, a “ Unit Share”) and one common
share purchase warrant (each a “ Warrant”). Each Warrant entitle s the holder to purchase one
common share (each, a “Warrant Share”) at a price of $0.20 at any time on or before that date which
is thirty-six (36) months from the date of issuance.
The Units were issued to Canadian purchasers pursuant to the listed issuer financing exemption under
Part 5A of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”) and in reliance on the
Coordinated Blanker Order 45 -935 – Exemptions From Certain Conditions of the Listed Issuer
Financing Exemption (the “ Listed Issuer Financing Exemption ”). The Unit Shares and Warrant
Shares underlying the Units are not subject to any hold period under applicable Canadian securities
legislation if sold to purchasers resident in Canada. The Units sold under the Offering to offshore and
purchasers in the United States were sold in accordance with OSC Rule 72-503 - Distributions Outside
Canada (“OSC Rule 72-503”). The Units sold to purchasers in the United States will be made on a
private placement basis pursuant to one or more exemptions from registration requirements of the
United States Securities Act of 1933, as amended (the “U.S. Securities Act”).
The Company intends to use the net proceeds from the Offering for: (i) the procurement of mine
processing flotation cells; (ii) to commence rehabilitation work of the La Parrilla processing facility
including equipment purchase and refurbishment, labour and supplies; (iii) to order long lead items
including deposits on mining equipment and ventilation fans; (iv) to fund ongoing operations for the
next twelve months; and (v) for general corporate and working capital purposes, all as further detailed
in the Amended and Restated Offering Document (as hereinafter defined).
There is an amended and restated offering document relating to the Offering dated May 30, 2025 (the
"Amended and Restated Offering Document") that can be accessed under the Company's profile
at www.sedarplus.ca and on the Company’s website at www.silverstorm.ca. Prospective investors in
the Offering should read the Amended and Restated Offering Document before making an investment
decision.
As consideration for their services in the First Tranche of the Offering , the Agents and Harbourfront
Wealth Management LLC received a n aggregate cash payment of $540,735 and 4,159,500 non-
transferable common share purchase warrants (the “ Broker Warrants”). Each Broker Warrant is
exercisable into one common share of the Company at the Offering Price for a period of thirty-six (36)
months from the date of issuance.
The Offering remains subject to the final approval of the TSX Venture Exchange (the “ TSXV”). The
remaining Offering amount of up to $1,470,950 from the sale of up to 11,315,000 Units at the Offering
Price has been allocated to subscribers and the Company is expecting to close the final tranche of the
Offering within the coming days.
Eric Sprott through 2176423 Ontario Ltd., a corporation which is beneficially owned by him, and which
holds greater than 10% of the Company’s common shares, subscribed for 7,700,000 Units in the First
Tranche of the Offering for an aggregate purchase price of $ 1,001,000 (the “Insider Participation”).
The Insider Participation will be considered a “related party transaction ” within the meaning of
Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI
61-101”). The Company expects to rely on exemptions from the formal valuation and minority
shareholder approval requirements provided under MI 61 -101 pursuant to section 5.5(a) and section
5.7(1)(a) of MI 61 -101, on the basis that the Insider Participation does not exceed 25% of the fair
market value of the Company’s market capitalization. The Company did not file a material change
report in respect of the Insider Participation at least 21 days before expected closing date of the
Offering as the Insider Participation was not confirmed prior to the foregoing period.
This news release does not constitute an offer to sell or a solicitation of an offer to buy securities in
the United States, nor shall there be any sale of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful . The securities have not been and will not be registered under
the U.S. Securities Act, as amended or any state securities laws and may not be offered or sold within
the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is available.
About Silver Storm Mining Ltd.
Silver Storm Mining Ltd. holds advanced -stage silver projects located in Durango, Mexico. In 2023
Silver Storm acquired of 100% of the La Parrilla Silver Mine Complex, a prolific past producing
operation comprised of a 2,000 tpd mill as well as five underg round mines and an open pit that
collectively produced 34.3 million silver -equivalent ounces between 2005 and 2019. The Company
also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver
assets in Mexico. For more in formation regarding the Company and its projects, please visit our
website at www.silverstorm.ca.
For additional information, please contact:
Greg McKenzie, President & CEO
Ph: +1 (416) 504-2024
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the
TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements:
Certain statements in this news release are forward -looking and involve a number of risks and
uncertainties. Such forward-looking statements are within the meaning of the phrase ‘forward-looking
information’ in the Canadian Securities Administrators’ Natio nal Instrument 51 -102 – Continuous
Disclosure Obligations. Forward -looking statements are not comprised of historical facts. Forward -
looking statements include estimates and statements that describe the Company’s future plans,
objectives or goals, including words to the effect that the Company or management expects a stated
condition or result to occur. Forward-looking statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward -looking
statements are based on assumptions and address future events and conditions, by their very nature
they involve inherent risks and uncertainties. Although these statements are based on information
currently available to the Company, the Company provides no assurance that actual results will meet
management’s expectations. Risks, uncertainties and other factors inv olved with forward -looking
information could cause actual events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward -looking information. Forward -looking
information in this news release i ncludes, but is not limited to : the intended use of proceeds of the
Offering, the closing conditions of the Offering, statements with respect to the closing of the second
tranche of the offering, including the timing and terms thereof, final TSXV approval of the Offering ,
statements with respect to the Insider Participation, including reliance on the MI 61-101 exemptions,
the Company's plans and expectations for La Parrilla, and the ability to eventually place the La Parrilla
Complex back into production.
In making the forward -looking statements included in this news release, the Company have applied
several material assumptions, including that the Offering will close on the anticipated terms or at all or
may not close on the terms and conditions currently anticipated by the Company; that the Company
will use the net proceeds of the Offering as anticipated ; that the Company will receive all necessary
approvals in respect of the Offering; the Company´s financial condition and development plans do not
change because of unforeseen events, and management’s ability to execute its business strategy and
no unexpected or adverse regulatory changes with respect to La Parrilla , the decision to potentially
place La Parrilla into production, other production related deci sions or to otherwise carry out mining
and processing operations, being largely based on internal non-public Company data and reports from
previous operations and not based on NI 43 -101 compliant reserve estimates, preliminary economic
assessments, pre-feasibility or feasibility studies, resulting in higher risks than would be the case if a
feasibility study were completed and relied upon to make a production decision . Forward-looking
statements and information are subject to various known and unknown risks and uncertainties, many
of which are beyond the ability of the Company to control or predict, that may cause the Company’s
actual results, performance or achievements to be materially different from those expressed or implied
thereby, and are developed ba sed on assumptions about such risks, uncertainties and other factors
set out herein.
Such forward -looking information represents managements best judgment based on information
currently available. No forward -looking statement can be guaranteed, and actual future results may
vary materially. Accordingly, readers are advised not to place undue reliance on forward -looking
statements or information.