Silver Storm Mining Expands Funding Initiative with Major Stakeholder

Silver Storm Mining's Expanded Private Placement Offering

Silver Storm Mining Ltd. (TSX.V: SVRS | FSE: SVR) has announced an exciting upsize to its previously revealed non-brokered private placement. This increase brings the potential total of this offering to a remarkable $3.5 million, allowing investors to purchase units at a price of $0.09 per unit. The company is actively pursuing approval from the TSX Venture Exchange (TSXV) for this initiative.

Involvement of Significant Shareholder

A noteworthy aspect of this offering is the strong commitment from First Majestic Silver Corp. (FM), a significant shareholder, which is set to invest $1.5 million. This participation not only reflects FM's confidence in Silver Storm Mining’s strategy but also positions the company for enhanced financial stability and growth opportunities. By this time, Silver Storm has successfully raised gross proceeds of approximately $1,290,420 as part of the offering.

Details of the Offering

The offering will provide each investor with a unit that encompasses one common share and one common share purchase warrant. The warrants, which may be exercised to acquire additional shares at an exercise price of $0.16, will remain valid for a period of thirty-six months from issuance. This structure presents an appealing opportunity for investors, offering both immediate equity and the potential for future gains.

Compensation for Introduction of Investors

As part of the offering strategy, Silver Storm Mining may allocate up to 7% in cash fees and finders' warrants to eligible parties who assist in introducing subscribers to the placement. Each finder's warrant offers an enticing opportunity to acquire common shares at the same price of $0.16 over a thirty-six-month period. This proactive approach not only rewards introducers but also highlights Silver Storm’s commitment to building solid relationships within the investment community.

Regulatory Approval and Future Plans

The offering has received conditional approval from the TSXV, paving the way for a smooth execution pending all necessary regulatory approvals. As part of the company's strategy, proceeds from the offering will be allocated towards finalizing a forthcoming NI 43-101 resource statement, as well as covering general corporate and working capital expenses. This strategic deployment of resources underscores the company's focus on advancing its operational effectiveness.

Company Background and Project Overview

Silver Storm Mining Ltd. is fundamentally positioned with advanced-stage silver projects situated in Durango, Mexico. The recent acquisition of the La Parrilla Silver Mine Complex marks a significant milestone for the company, enhancing its asset portfolio with a prolific operation that boasts a 2,000 tpd mill and a series of underground mines. Historically, this complex has generated an impressive total of 34.3 million silver-equivalent ounces between 2005 and 2019, showcasing its potential.

Concluding Thoughts

As the company continues to strengthen its foothold in the market, the participation of First Majestic Silver further enhances Silver Storm's position within the mining sector. By bolstering its financial backing through strategic funding initiatives, Silver Storm Mining is poised for continued growth and success. Investors and stakeholders are keenly watching the upcoming developments, including the finalization of the NI 43-101 resource statement, which is anticipated to illustrate the true value of Silver Storm's promising projects.

Frequently Asked Questions

What is the total amount of the private placement offering?

The total amount of the private placement offering is up to $3.5 million.

Who is a significant investor in the offering?

First Majestic Silver Corp. is a significant investor, committing to invest $1.5 million in the offering.

What does each unit consist of in the offering?

Each unit consists of one common share and one common share purchase warrant.

What is the exercise price of the warrants?

The exercise price of the warrants is $0.16 per share.

How will the company use the proceeds from the offering?

The proceeds will be used to complete an NI 43-101 resource statement and for general corporate and working capital purposes.

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