Nevada Silver Corporation (TSX-V:NSC) has announced that it is raising up to $7.02 million to further exploration and development of the Corcoran Canyon silver-gold property in Nevada.
The offering, led by Canaccord Genuity (TSX:CF, LSE:CF), will consist of units offered at $0.30, with each unit consisting of one share and one-half of one warrant.
Each whole warrant entitles the holder to purchase one share of the company at a price of $0.45 per share for a 24-month period from the closing date.
READ: Nevada Silver Corp raises C$2 million to advance Nevada projects
Additional proceeds will go towards drilling at the recently acquired Belmont silver property, also in Nevada.
The agents have the option, exercisable at any time prior to the closing of the offering, to increase the size of the offering by up to $3 million.
Nevada Silver has agreed to pay to the agents a commission equal to 7% of the gross proceeds from the offering. In addition, the company will issue the agents warrants to acquire that number of units which is equal to 7% of the number of units sold, at an exercise price equal to the offering for a period of 24 months following the closing date.
The agents' commission is up to a maximum of $2 million shall be reduced to 2.5% commission and 2.5% warrants. In addition, on closing Nevada Silver will pay the lead agent a corporate finance fee of that number of units which is equal to 3% of the aggregate number of units issued under the offering.
The closing of the offering is expected to occur by March 31, 2022.
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