Silver Storm Announces A Further Upsize of Its Brokered Private Placement For Gross Proceeds of up to C$10.0 Million with Participation from Eric Sprott
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Toronto, Ontario, May 30, 2025: Silver Storm Mining Ltd. (“Silver Storm” or the "Company") (TSX.V: SVRS | FSE: SVR), is pleased to announce that as a result of strong investor demand, the Company and Red Cloud Securities Inc., as lead agent and bookrunner and Ventum Financial Corp., as co-agent (collectively, the “Agents”), have agreed to an additional increase in the size of the previously announced best-efforts private placement (the “Marketed Offering”) from gross proceeds of up to C$8,008,000 to gross proceeds of up to C$10,010,000. The upsized Marketed Offering is comprised of the sale of up to 77,000,000 units of the Company (each, a “Unit”) at a price of $0.13 per Unit (the “Offering Price”).
Mr. Eric Sprott, through 2176423 Ontario Ltd. and current significant shareholder of the Company, has indicated his intention to participate in the Offering
Each Unit will consist of one common share of the Company (each, a “Unit Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant shall entitle the holder to purchase one common share (each, a “Warrant Share”) at a price of C$0.20 at any time on or before that date which is thirty-six (36) months after the Closing Date (as hereinafter defined).
The Company has granted to the Agents an option, exercisable in full or in part, up to 48 hours prior to the Closing Date, to sell up to an additional 15,400,000 Units at the Offering Price to raise up to an additional C$2,002,000 in gross proceeds (the “Agent’s Option”, and together with the Marketed Offering, the “Offering”).
The Company intends to use the net proceeds from the Offering to commence rehabilitation work of the La Parrilla processing facility, order long lead items required to restart La Parrilla, fund ongoing operations for the next twelve months, and for general corporate and working capital purposes, all as further detailed in the Offering Document.
Subject to compliance with applicable regulatory requirements and in accordance with Part 5A of National Instrument 45-106 – Prospectus Exemptions 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 Units will be offered for sale to purchasers resident in the provinces of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan. The Unit Shares and Warrant Shares underlying the Units are expected to be immediately freely tradeable under applicable Canadian securities legislation if sold to purchasers’ resident in Canada. The Units sold under the Offering may also be issued to purchasers outside of Canada, including to purchaser’s resident in the United States and in certain offshore foreign jurisdictions, pursuant to applicable regulatory requirements and 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”). Purchasers are advised to consult their own legal advisors in this regard.
There is an amended and restated offering document relating to the Offering (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.
