Silver Storm Closes Third Tranche of Its Non-Brokered Private Placement Offering Including Participation BY Eric Sprott, and Engagement of Whittle Consulting
NEWS RELEASE
THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES FOR
DISSEMINATION IN THE UNITED STATES
SILVER STORM CLOSES THIRD TRANCHE OF ITS NON-BROKERED PRIVATE
PLACEMENT OFFERING INCLUDING PARTICIPATION BY ERIC SPROTT,
AND ENGAGEMENT OF WHITTLE CONSULTING
Toronto, Ontario, January 17, 2025: Silver Storm Mining Ltd. (“ Silver Storm” or the " Company")
(TSX.V: SVRS | FSE: SVR), is pleased to announce that on January 16, 2025, it closed the third
tranche (the “Third Tranche”) of its non-brokered private placement offering (the “Offering”) of units
of the Company (each, a “Unit”) previously announced on December 5, 2024. Under the Third Tranche
of the Offering, 8,716,667 Units were issued at a price of $0.09 per Unit for aggregate gross proceeds
of $784,500.03. The Third Tranche included a $500,000 investment from current significant
shareholder Eric Sprott. To date under the Offering, the Company has raised total gross proceeds of
$1,290,420.
Each Unit consists of one common share of the Company (a " Common Share") and one common
share purchase warrant (each whole warrant, a " Warrant"). Each Warrant shall be exercisable to
acquire one (1) additional Common Share at an exercise price of C$0.16 until 36 months after closing
(the “Expiry Date”).
In connection with the Third Tranche of the Offering, the Company paid certain finders who introduced
subscribers to the Offering including: Canaccord Genuity Corp. and Haywood Securities Inc. the
following fees: (1) a cash commission totaling $6,930, being up to 7% of the gross proceeds raised
under the Offering from investors introduced to the Company from such finders, and (2) 77,000 non-
transferable common share purchase warrants of the Company (“Finders’ Warrants”), being up to
7.0% of the Units sold under the Offering from investors introduced to the Company from such finders.
Each Finder’s Warrant entitles the holder to purchase one Common Share at a price of $0.16 for a
period of 36 months.
The Units were offered by way of private placement pursuant to exemptions from prospectus
requirements under applicable securities laws. The securities issued and issuable pursuant to the
Offering are subject to a four month and one day hold period from the date of closing. The Warrants
and Finders’ Warrants will not be listed for trading. The Company intends to use the net proceeds from
the Offering to complete its upcoming NI 43 -101 resource statement and for general corporate and
working capital purposes.
The Offering has received conditional approval from the TSX Venture Exchange (the “TSXV”).
The participation of Mr. Sprott, an insider of the Company, in the Third Tranche constitutes a "related
party transaction" under the policies of the TSXV and within the meaning of Multilateral Instrument 61-
101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Notwithstanding
the foregoing, the directors of the Company have determined that the Mr. Sprott's participation in the
Offering will be exempt from the formal valuation and minority shareholder approval requirements of
MI 61-101 in reliance on the exemptions set forth in sections 5.5(a) and 5.7(1)(a), respectively, of MI
61-101, as neither the fair market value of the shares purchased on behalf of Mr. Sprott nor the
consideration paid by him exceeds 25% of the Company's market capitalization. The Company did
not file a material change report more than 21 days before the expected closing of the Offering as the
participation by Mr. Sprott was not settled until shortly prior to closing and the Company wished to
close on an expedited basis for sound business reasons.
The Company is also extending the Offering period for up to an additional 30 days, ending February
19, 2025, subject to approval from the TSXV. See previous news releases dated December 5, 2024,
December 19, 2024, January 6, 2025, and January 9, 2025, for further details of the Offering.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended,
or applicable state securities laws, and may not be offered or sold to persons in the United States
absent registration or an exemption from such 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 jurisdiction in which such offer, solicitation or sale would be unlawful.
Engagement of Whittle Consulting Ltd.
The Company is also pleased to announce the engagement of Whittle Consulting Ltd. (“ WCL”) to
conduct a Strategic Optionality Planning Study (“SOPS”) on the Company’s 100% owned La Parrilla
Silver Complex, located in Durango, Mexico. The SOPS involves a rigorous analytical and
computational process using WLC Strategic Mine Planning software and Integrated Strategic Planning
concepts.
The SOPS analysis by WCL will commence following receipt of the upcoming Mineral Resource
Update for the project, being performed by SRK Canada Inc and will be completed over the course of
a couple months focus ing on optimizing the underground mining sequence and schedule, potential
use of existing oxide stockpiles, and plant structure, throughput and staging.
WCL has demonstrated in over 180 Enterprise Optimization studies, that the comprehensive
application of the “Whittle Integrated Strategic Planning” approach have yielded improvements in the
economics estimated by previous studies in many mining projects, even when several conventional
optimization approaches have already been applied.
WCL has the most advanced Strategic Mine Planning software in the form of “Prober E”. The product
of 35 years of optimization software development by founder Jeff Whittle, it combines Linear
Programming with a sophisticated proprietary Search Algorithm, a Genetic Algorithm, and the ability
to harness multiple processors on 200+ in -house servers and dedicated servers in Helsinki. This
allows them to explore complexity and optimize even the largest and most complex multi -variable,
non-linear problems that mining involves.
WCL is a group of highly experienced industry experts, who have strong technical backgrounds in a
range of disciplines including geology, mining engineering, metallurgy, research, mathematics and
computing, finance, operational/financial modeling and analy sis and a thorough appreciation of
practical, organizational, and contextual reality.
WCL have agreed to receive their consulting fee in common shares of the Company (the “ Fee
Shares”). The Fee Shares will be payable following completion of the study and will be issued at the
7-day volume-weighted average price as of the date of the invoice. The issuance of the Fee Shares
are subject to the policies and approval of the TSX Venture Exchange.
About Silver Storm Mining Ltd.
Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Silver Storm
recently completed the acquisition of 100% of the La Parrilla Silver Mine Complex, a prolific operation
which is comprised of a 2,000 tpd mill as well as five underground 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 information 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, includin g words to the effect that the Company or management and Qualified
Persons (in the case of technical and scientific information) 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 assump tions and address future events and conditions, by their very nature they involve
inherent risks and uncertainties. Although th ese 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 involved with forward -looking
information could ca use 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 includes, but is not limited to, the intended us e of proceeds of the
Offering, the closing conditions of the Offering, receipt of final TSXV approval of the Offering and the,
the future exploration performance at La Parrilla, the timing and completion of an updated technical
report for La Parrilla Complex, and the results of the SOPS analysis by WCL.
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;
that the Units will have the anticipated terms; 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 . 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
based on assumptions about such risks, uncertainties and other factors set out herein.
Such forward-looking information represents managements and Qualified Persons (in the case of
technical and scientific information) 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.