This press release is issued pursuant to Multilateral Instrument 62-104 – Take-Over Bids and Issuer Bids and National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues .
NEW YORK, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Pursuant to the public listing of Gatos Silver, Inc.’s (“ Gatos ”) shares of common stock (the “ Shares ”) on the Toronto Stock Exchange (the “ Listing ”) and the closing of the issuer’s initial public offering (the “ IPO ”) and related corporate reorganization (the “ Reorganization ” and, collectively with the Listing and IPO, the “ Transactions ”), which closed on October 30, 2020, Electrum Silver US LLC (“ Electrum ”) is the owner of 19,993,086 Shares, representing approximately 35.72% of the issued and outstanding Shares following the completion of the Transactions.
As a result of the completion of the Transactions, Electrum Silver US II LLC, a “joint actor” (as such term is defined in National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues ) of Electrum, owns 4,591,627 Shares, representing approximately 8.20% of the issued and outstanding Shares. Prior to the completion of the Transactions, Electrum owned 50,736,473 shares of common stock (“ Pre-IPO Shares ”) of Gatos, which was previously named Sunshine Silver Mining & Refining Corporation, and Electrum Silver US II LLC owned 4,769,922 Pre-IPO Shares, representing, together, approximately 68.83% of Gatos’ then issued and outstanding Pre-IPO Shares. Prior to the completion of the Transactions, Gatos was not a reporting issuer under Canadian securities laws.
The securities referred to above were acquired for investment purposes and Electrum and/or one or more of its affiliates may, depending on market and other conditions, increase or decrease its beneficial ownership of Shares or other securities of Gatos whether in the open market, by privately negotiated agreement or otherwise.
Electrum is an “accredited investor” (as such term is defined in National Instrument 45-106 – Prospectus Exemptions adopted by the Canadian Securities Administrators (“ NI 45-106 ”)) because Electrum is a “person” (as such term is defined in NI 45-106) in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are “accredited investors”. Additional information relating to Electrum’s relationship with the issuer can be found in Gatos’ long form prospectus dated October 27, 2020 filed on SEDAR.
Gatos is located at 8400 E. Crescent Pkwy, Suite 600, Greenwood Village, Colorado, USA 80111. Electrum is located at 535 Madison Avenue, 12th Floor, New York, NY, USA 10022. A copy of the early warning report to which this news release relates can be obtained from Michael Williams (646-365-1600) or on the SEDAR profile of Gatos at www.sedar.com .
