Silver Storm Mining Successfully Closes Third Tranche Deal
Silver Storm Mining Completes Third Tranche of Offering
Silver Storm Mining Ltd. (“Silver Storm” or the "Company") (TSX.V: SVRS | FSE: SVR) has achieved a notable milestone by finalizing the third tranche of its private placement offering. The offering was designed to raise funds with the intent to bolster the Company’s operational capabilities and growth trajectory.
Details of the Private Placement Offering
On the completion of this third tranche, Silver Storm successfully issued 8,716,667 Units at a price of $0.09 each, resulting in aggregate gross proceeds totaling $784,500.03. This impressive financing effort included a significant investment from notable shareholder Eric Sprott, reflecting confidence in the Company's potential. Overall, the Offering has amassed total gross proceeds of $1,290,420.
Structure of the Units
Each Unit comprises one common share and a common share purchase warrant which allows the holder to acquire an additional Common Share at an exercise price of C$0.16. The exercise period for these warrants is set for 36 months following the closing date.
Incentives for Finders
The Company has compensated certain finders, including Canaccord Genuity Corp. and Haywood Securities Inc., for their role in introducing investors. This included a cash commission of $6,930 and the issuance of 77,000 non-transferable Finders’ Warrants, again reflecting the Company’s commitment to fostering strong relationships within its investment network.
Utilization of Proceeds
The net proceeds from this offering are earmarked for critical endeavors, including the completion of an NI 43-101 compliant resource statement, along with general corporate and working capital needs. The planned use of funds underscores the Company’s strategic growth plans and its commitment to increasing shareholder value.
Conditional Approval and Related Party Transactions
The closing of this offering has achieved conditional approval from the TSX Venture Exchange (the "TSXV"). It is worth noting that Eric Sprott’s participation represents a related party transaction as defined under TSXV policies. However, the Company's board has determined that this participation qualifies for exemptions regarding formal valuation requirements and minority shareholder approval, reassuring investors of ethical governance practices.
Offering Period Extension
In a bid to further optimize financing opportunities, Silver Storm Mining will extend the offering period by an additional 30 days, pending TSXV approval. This decision serves to enhance the Company’s fundraising efforts, providing more time for investors to engage in this promising opportunity.
Engagement with Whittle Consulting Ltd.
In tandem with the financial developments, Silver Storm has formed a new partnership with Whittle Consulting Ltd. to perform a Strategic Optionality Planning Study ("SOPS") for its La Parrilla Silver Complex in Mexico. This study aims to improve the operational efficiency and economic framework of the mine.
Objectives of the SOPS
The engagement with WCL will allow Silver Storm to utilize advanced planning software for optimizing its mining strategies. The SOPS focuses on enhancing the underground sequence, assessing the use of existing stockpiles, and refining processing plant structures to maximize throughput.
WCL's Expertise and Approach
Whittle Consulting brings a wealth of experience with over 180 Enterprise Optimization studies. Their integrated strategic planning methodology has led to significant improvements in project economics, thereby offering Silver Storm a pathway to elevate the performance of its mining operations.
Company Overview
Silver Storm Mining Ltd. remains committed to advancing its high-potential silver projects in Mexico. With the recent acquisition of 100% of the La Parrilla Silver Mine Complex, the Company has positioned itself as a key player in the silver mining sector, equipped to leverage its facilities for future production success.
Frequently Asked Questions
What is the purpose of the private placement offering?
The primary purpose is to raise funds for operational improvements, including a resource statement and working capital needs.
Who participated in the recent tranche of the offering?
Eric Sprott, a significant shareholder, made a notable investment in this tranche.
How will the funds be utilized?
The net proceeds will aid in operational enhancements and implementing a strategic resource statement.
What is the engagement with Whittle Consulting about?
The engagement involves conducting a Strategic Optionality Planning Study to optimize mining and production strategies at La Parrilla.
Is there any extension to the offering period?
Yes, the offering period is extended for an additional 30 days, subject to TSXV approval.
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