Silver Storm Announces Bought Deal LIFE Private Placement For Gross Proceeds of C$13.0 Million
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Toronto, Ontario, September 3, 2025: Silver Storm Mining Ltd. (“Silver Storm” or the “Company”) (TSX.V:SVRS | FSE: SVR) is pleased to announce that it has entered into an agreement with Red Cloud Securities Inc. (“Red Cloud”), as sole underwriter and bookrunner, pursuant to which Red Cloud has agreed to purchase for resale 52,000,000 units of the Company (the “Units”) at a price of C$0.25 per Unit (the “Offering Price”) on a “bought deal” basis in a private placement for gross proceeds of C$13,000,000 (the "Underwritten Offering").
Each Unit will consist of one common share of the Company (each, a “Unit Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant shall entitle the holder to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.35 at any time on or before that date which is 36 months after the Closing Date (as herein defined).
The Company will grant to Red Cloud an option, exercisable up to 48 hours prior to the Closing Date, to purchase for resale up to an additional 8,000,000 Units at the Offering Price for additional gross proceeds of up to C$2,000,000 (the “Over-Allotment Option”). The Underwritten Offering and the securities issuable upon exercise of the Over-Allotment Option shall be collectively referred to as the “Offering”.
The Company intends to use the net proceeds from the Offering to advance the restart of the La Parrilla Silver Mine Complex in Durango, Mexico as well as for general corporate purposes and working capital, as is more fully described in the Offering Document (as defined herein).
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”), up to 51,200,000 Units (the “LIFE Units”), representing gross proceeds of up to C$12,800,000, will be offered for sale to purchasers in the provinces of Alberta, British Columbia, Manitoba, Ontario and Saskatchewan pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the “LIFE Exemption”). The Unit Shares and Warrant Shares underlying the LIFE Units are expected to be immediately freely tradeable under applicable Canadian securities legislation if sold to purchasers resident in Canada. The Units that are not sold pursuant to the LIFE Exemption under the Offering may also be offered to purchasers (i) in the Canadian Selling Jurisdictions by way of the “accredited investor” and “minimum amount investment” exemptions under NI 45-106, (ii) in the United States or to, or for the account or benefit of, U.S. persons, by way of private placement pursuant to the exemptions from the registration requirements provided for under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and (iii) in jurisdictions outside of Canada and the United States on a private placement or equivalent basis, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction. All securities not issued pursuant to the LIFE Exemption will be subject to a hold period in Canada ending on the date that is four months plus one day following the Closing Date, in accordance with applicable Canadian securities legislation.
There is an offering document (the “Offering Document”) related to the Offering 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 should read this Offering Document before making an investment decision.
