GR Silver Mining (TSX-V:GRSL) Ltd said it has entered into an agreement with Beacon Securities Ltd, on behalf of a syndicate of agents, in connection with a best efforts private placement of up to 33,334,000 units at a price of 15 cents per unit for aggregate gross proceeds of up to $5,000,100.
The company said it intends to use the net proceeds of the offering for working capital and general corporate purposes.
Each unit in the offering shall consist of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will be exercisable to acquire one common share for a period of 36 months following the closing of the offering at an exercise price of 22 cents per common share.
READ: GR Silver Mining unveils new silver discovery to the southeast of the San Marcial Resource Area on its wholly-owned Plomosas Project
The company said it has granted the agents an option, exercisable by Beacon on behalf of the agents, to sell up to an additional 5,000,100 units at the issue price for additional gross proceeds of up to $750,015, exercisable in whole or in part at any time up to 48 hours prior to the closing date of the offering.
The offering is expected to close on or about August 30, 2022, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.
The offering will be conducted under terms of an agency agreement to be entered into between the company and the agents on or prior to the closing date. In connection with the offering, the agents will receive: (i) a cash commission of 6.0% of the gross proceeds of the offering; and (ii) that number of compensation options as is equal to 6.0% of the aggregate number of units sold under the offering. Each compensation option will be exercisable into one common share at the issue price for a period of 36 months from the closing date of the offering.
The units, warrants, warrant shares and common shares issuable under the compensation options will be subject to a four-month hold period from the date of closing of the offering in addition to any other restrictions under applicable law.
GR Silver Mining (TSX-V:GRSL) 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-stage to advanced-stage exploration targets, the company holds 734 square kilometres of concessions containing several structural corridors totalling over 75 kilometres in strike length.
Contact the author at jon.hopkins@proactiveinvestors.com