Zacatecas Silver Announces $15MM Subscription Receipt Offering THIS NEWS RELEAS E IS INTENDE D FOR DISTRIBUTIO N IN CANAD A ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTIO N TO UNITE D STATES NEWSWIR E SERVICES OR FOR DISSEMINAT ION IN THE UNITE D STATES.
Zacatecas Silver Announces $15MM Subscription
Receipt Offering
THIS NEWS RELEAS E IS INTENDE D FOR DISTRIBUTIO N IN CANAD A ONLY AND IS
NOT AUTHORIZED FOR DISTRIBUTIO N TO UNITE D STATES NEWSWIR E SERVICES OR
FOR DISSEMINAT ION IN THE UNITE D STATES.
TORONTO, Feb. 28, 2022 (GLOBE NEWSWIRE) -- Zacatecas Silver Corp. (“ Zacatecas
Silver ” or the “ Company ”) (TSXV: ZAC ; OTC: ZCTSF ) is pleased to announce that it has
entered into an agreement with Clarus Securities Inc. as lead agent and sole bookrunne r on
behalf of a syndicate of agents (collectively, the “ Agents ”), whereby the Agents will raise
up to $15,000,700 (the “ Offering ”) through an Offering of up to 13,637,000 subscription
receipts of the Company (the “ Subscription Receipts ”) to be price d at $1.10 per
Subscription Receipt. Each Subscription Receipt is convertible into one Unit of the Company
(each, a “ Unit ”) upon the completion of certain Escrow Release Conditions (as defined
below). Each Unit will consist of one Common Share (each, a “ Common Share ”) and one
half of one Common Share purchase warrant (each full warrant, a “ Warrant ”). Each
Warrant shall entitle the holder thereof to purchase one Common Share at a price of $1.50
per Common Share for a period of 24 months following the C losing date. The Offering is
expected to close on or about March 22, 2022 (the “ Closing Date ”).
The proceeds raised from the Offering will be used partially to satisfy the USD$5,000,000
cash consideration in connection with the acquisition of the Esperan za Project from Alamos
Gold Inc., begin advancing the Esperanza Project towards production, fund the ongoing drill
program at the Company’s existing silver project, and general working capital purposes.
The proceeds of the Offering will be released from es crow, upon notice given to the Escrow
Agent on or prior to 5:00pm (Toronto time) on the date that is 60 days from the Closing Date
(the “ Termination Time ”) upon (a) the completion, satisfaction or waiver, as the case may
be, of all the conditions precedent to the acquisition of the Esperanza Project by the
Company from a subsidiary of Alamos Gold (the “ Proposed Transaction ”) set forth in the
share purcha se agreement between such parties dated February 28, 2022, shall have
occurred, been satisfied or been waived; and (b) the receipt of all required shareholder, third
party (as applicable) and regulatory approvals in connection with the Proposed Transaction
((a) and (b) together, the “ Escrow Release Conditions ”).
The Offering is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals including the acceptance by the TSX Venture Exchange. The securities
to be issue d under this Offering will be offered by way of private placement exemptions in all
the provinces of Canada, and in the United States on a private placement basis pursuant to
exemptions from the registration requirements of the United States Securities Act of 1933 ,
as amended.
The securities being offered have not, nor will they be registered under the United
States Securities Act of 1933 , as amended, and may not be offered or sold within the United
States or to, or for the account or benefit of, U.S. p ersons absent U.S. registration or an
applicable exemption from the U.S. registration requirements. This release does not
constitute an offer for sale of securities in the United States.
Abou t Zacatecas Silver
The Zacatecas Silver property is located in Zacatecas State, Mexico, within the highly
prospective Fresnillo Silver Belt, which has produced over 6.2 billion ounces of silver. The
company holds 7,826 ha (19,338 acres) of ground that is highly prospective f or low and
intermediate sulphidation silver -base metal mineralization and potentially low sulphidation
golddominant mineralization. On December 15, 2021, Zacatecas announced a mineral
resource estimate at the Panuco Deposit consisting of 2.7 million tonnes at 187 g/t AgEq
(171 g/t Ag and 0.17 g/t Au) for 16.4 million ounces AgEq (15 million ounces silver and 15
thousand ounces gold) (see news release dated December 15, 2021).
The property is 25 km south -east of MAG Silver Corp.'s Juanicipio Mine and Fresnil lo PLC's
Fresnillo Mine. The property shares common boundaries with Pan American Silver Corp.
claims and El Orito which is owned by Endeavour Silver.
There are four main high -grade silver target areas within the Zacatecas concessions: the
Panuco Deposit, M uleros, El Cristo and San Manuel -San Gill. The Property also includes El
Oro, El Orito, La Cantera, Monserrat, El Peñón, San Judas and San Juan silver -base metal
vein targets. These targets are relatively unexplored and will be the focus of rapid
reconnais sance.
On Behalf of the Company,
Bryan Slusarchuk, Chief Executive Officer and Director
For further infor m ation, please contact:
Jonathan Richards, Chief Financial Officer
+1 604 802 4447
www.zacatecassilver.com
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. Zacatecas Silver cautions th at all forward looking statements are inherently
uncertain and that actual performance may be affected by many material factors, many of
which are beyond their respective control. Such factors include, among other things: risks
and uncertainties relating t o Zacatecas Silver’s limited operating history, its proposed
exploration and development activities on is Zacatecas Properties and the need to comply
with environmental and governmental regulations. Accordingly, actual and future events,
conditions and re sults 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, Zacatecas Silver does not undertake to publicly
update or revise forward -looking information.
Neither TSX Ventur e Exchang e nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accept Responsibility for the adequacy or accuracy
of this release.