GR Silver Mining Ltd (TSX-V:GRSL) said it has increased and closed its non-brokered private placement initially announced on January 31, 2023, issuing 30,300,000 units for gross proceeds of $3,030,000.
In a statement, GR Silver Mining CEO and chair Eric Zaunscherb commented: "We are very grateful to our shareholders, both existing and new, for their support in completing this offering, as well as the assistance of our capital markets partners. Management has been very pleased to see the progress being made at our Plomosas Project in Sinaloa, Mexico, and is very proud of the team on site that is responsible for this progress. We look forward to releasing the results of our updated mineral resource estimate before the end of this quarter as anticipated."
The gross proceeds will be used for work programs on the company's Plomosas Project and for general working capital, GR Silver Mining said previously.
READ: GR Silver Mining to raise up to $3M in gross proceeds from a non-brokered private placement
In connection with the offering, the company paid a total of $116,940 and issued a total of 1,169,400 warrants as finder's fees. Each finder's warrant is exercisable for one common share at a price of $0.15 for two years; except that, if the closing price of the company's common shares on the TSX Venture Exchange (TSXV) is equal to or exceeds $0.30 for 10 consecutive trading days, then the company may anytime thereafter accelerate the expiry date of the warrants such that the new expiry date will be the tenth day following the date on which the company issues notice to all the warrant holders of the new expiry date.
All securities issued under the private placement are subject to a hold period expiring June 15, 2023, in accordance with applicable securities laws and the policies of the TSXV.
Certain directors and officers of the company participated in the offering and purchased an aggregate of 2,510,000 units for aggregate gross proceeds of $251,000. Participation by insiders in the private placement is considered a "related party transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (MI 61-101).
The securities have not been and will not be registered under the United States Securities Act of 1933 or any state securities laws and may not be offered or sold within the United States or to US Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
GR Silver Mining is a Canadian-based, Mexico-focused junior mineral exploration company engaged in cost-effective silver-gold resource expansion on its 100%-owned assets, located on the eastern edge of the Rosario Mining District, in the southeast of Sinaloa State, Mexico.
The company controls 100% of two past-producer precious metal underground and open pit mines, within the expanded Plomosas Project, which includes the integrated San Marcial Area and La Trinidad acquisition. In conjunction with a portfolio of early to advanced-stage exploration targets, the company holds 734 square kilometres of concessions containing several structural corridors totaling over 75 kilometres in strike length.
Contact the author at jon.hopkins@proactiveinvestors.com