Nevada Silver Corporation (TSX-V:NSC) has announced the completion of its previously announced reasonable "best efforts" marketed private placement, raising gross proceeds of approximately C$3.5 million.
The company previously said it intends to use the net proceeds from the offering for working capital purposes and to fund the advancement and maintenance of its Minnesota manganese project and Nevada silver projects.
Through agent and sole book runner Cormark Securities Inc, Nevada Silver said a total of 21,212,000 common shares were sold at $0.15 each and a total of 21,212,000 common share purchase warrants were sold at $0.015 each. Each warrant is exercisable to acquire one common share for $0.25 until January 5, 2025.
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The expiry date of the warrants will accelerate in the event the volume weighted average trading price of the common shares on the TSX Venture Exchange is equal to or exceeds $0.30 per share for a period of 20 consecutive trading days. If such an acceleration event occurs, the warrants will expire 30 days after notice.
In connection with the offering, Cormark Securities received a cash commission equal to $230,133.75, excluding proceeds derived from the sale of common shares and warrants to direct settlers. It also received 1,394,750 non-transferrable compensation options, entitling it to purchase common shares of the company at $0.165 per share until January 5, 2025.
Nevada Silver is a multi-commodity resource company with two exploration projects in the USA. Its principal asset is the Corcoran Silver-Gold Project in Nevada. In addition, the company has management and ownership rights over the Emily Manganese Project in Minnesota, which has been the subject of considerable technical studies, with US$24 million invested to date. Both Corcoran and Emily have been the subject of National Instrument 43-101 compliant mineral resource estimates.
Contact the author at stephen.gunnion@proactiveinvestors.com