Vancouver, British Columbia–(Newsfile Corp. – May 25, 2024) – IMPACT Silver Corp. (TSXV: IPT) (OTC Pink: ISVLF) (FSE: IKL) (“IMPACT” or the “Company”) is pleased to announce that due to increased investor interest, it will amend the Company's previously announced non-brokered private placement capital increase to raise aggregate proceeds of $8.2 million to $10.2 million (the “Offering”).The closing of the first tranche of the Offering for aggregate proceeds of $7.12 million was announced in the Company's news release dated May 21, 2024.
The revised financing increased to $7,000,000 from the sale of 25,925,925 units (“vinegarThe Offering is expected to be increased from the originally proposed amount of $3,000,000 and 11,111,111 Standard PP Units on April 30, 2024 to $5,000,000 and 18,518,518 Standard PP Units at $0.27 per Standard PP Unit on May 13, 2024, which is in addition to the $3,200,000 in the LIFE Offering (defined below), bringing the aggregate Offering amount to $10,200,000.
Each Standard PP Unit consists of one common share and one full share purchase warrant (each a “Warrant”), with each Warrant entitleing the holder thereof to acquire one common share of the Company at a price of $0.34 per Warrant Share (a “Warrant Share”) for a period of 24 months from the date of issuance.
The LIFE Finance Units will remain unchanged at $0.28 per LIFE Unit, each consisting of one common share and one-half of one warrant, for aggregate gross proceeds of up to $3.2 million (the “LIFE Offering”).All other terms of the Company's press release announcing the LIFE Offering and the Standard PP Unit Offering on April 30, 2024 remain unchanged.
Subject to applicable regulatory requirements and compliance with National Rule 45-106 – Prospectus exemptionThe LIFE Offering is being made pursuant to the public issuer financing exemption under Part 5A of NI 45-106 (the “Public Issuer Financing Exemption”). Securities offered pursuant to the public issuer financing exemption are not subject to any hold periods pursuant to applicable Canadian securities laws. Offering documents relating to the LIFE Offering (the “Offering Documents”) can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at impactsilver.com. Prospective investors should read the Offering Documents before making any investment decision.
The second and final tranche of the Offering is expected to close on or about the week of May 27, 2024 and is subject to certain conditions, including, but not limited to, obtaining all necessary approvals, including approval of the TSX Venture Exchange (the “Exchange”). The Company may pay brokerage commissions or fees on its portions of the Offering, subject to compliance with the policies of the Exchange and applicable securities laws. All common shares and warrants issued as part of the Standard PP Units will have a hold period of four months and one day from the date of issuance.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or any United States state securities laws, and may not be offered or sold in the United States absent an applicable exemption from the registration requirements of the 1933 Act and applicable state securities laws.
About Impact Silver
IMPACT Silver Corp. (TSXV: IPT) is a successful producer and explorer with two mining projects in Mexico.
Sacualpan Royal Mines Silver-Gold District: IMPACT owns 100% of the 211km2 The Zacualpan project in central Mexico has four underground silver mines and one open pit mine feeding the central 500 tpd Guadalupe processing plant. The Capire project to the south includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an inferred mineral resource of more than 4.5 million ounces of silver, 48 million pounds of zinc, and 21 million pounds of lead, NI 43-101 (see IMPACT news release dated January 18, 2016 for details and QP statement). The company's engineers are evaluating the possibility of restarting Capire to take advantage of rising commodity prices. Over the past 18 years, IMPACT has developed multiple exploration zones into commercial production, producing more than 12 million ounces of silver and generating more than $261 million in revenues.
Promosus Zinc-Lead-Silver District: Promosus is a high-grade zinc producer in northern Mexico with exceptional exploration potential. The company recently began exploratory mining and processing operations and facilities and equipment upgrades continue. Promosus' exploration potential is exceptional, with only 600 m of the 6 km structure explored to date. This is in addition to other exploration targets on 3,019 hectares of land, including an untested copper-gold target with indications of high-grade material from surface. Geographically, Promosus is in the same mineral belt as some of the world's largest carbonate replacement deposits.
Qualified Persons and NI 43-101 Disclosures
George Gorzynski, P.Eng., is a “Qualified Person” as defined by NI 43-101 and has approved the technical information contained in this news release.
On behalf of IMPACT Silver Corp.
“Frederick W. Davidson”
President and CEO
For further information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or Contact us at @impactsilver.com
(778) 887 6489 Direct
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Caution Regarding Forward-Looking Statements
This IMPACT news release may contain certain “forward-looking” statements and information regarding IMPACT that are based on the beliefs of, and assumptions made by, and information currently available to, IMPACT management. All statements contained herein, other than statements of historical fact, are forward-looking statements, including, but not limited to, statements regarding future silver prices, interpretation of drilling results, future work plans, the timing of the completion of the Offering, the use of proceeds received and funds, the potential of the Company's projects, and the potential and plans for the Plomosas Project. Forward-looking information is often, but not always, identified by the use of words such as “seeks,” “expects,” “plans,” “continues,” “planned,” “anticipates,” “projects,” “projects,” “predicts,” “potential,” “target,” “intends,” “believes,” “potential” or similar expressions and may also include statements such as “targets” or variations of such words and phrases, or state that certain actions, events or results “may,” “should,” “could,” “will,” “might” or “will occur.” There can be no assurance that (i) the Company will be able to complete or be able to complete the Second Tranche Offering on the terms described above or (ii) that the proceeds of the Offering will be disbursed as anticipated.
Such forward-looking information involves known and unknown risks and assumptions, including, but not limited to, exploration and development risks, expenditures and financing requirements, title issues, operating hazards, metals prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, government regulation and oversight, seasonality, technological changes, industry practices, and one-time events. If one or more of the risks or uncertainties materialize or change, or if underlying assumptions prove incorrect, actual results and the forward-looking statements may differ materially from those discussed herein. IMPACT undertakes no obligation to update forward-looking statements, except as required by law.
Our decisions to commence mine production, expand mines or other production-related decisions, or to conduct mining and processing operations, are based primarily on non-public internal data and reports based on exploration, development and mining work by our geologists and engineers, the results of which are evident in the discovery and construction of our several mines and our track record of mineral production and financial returns since 2006. Under NI 43-101, we are required to disclose that we have not made production decisions based on mineral resource or reserve estimates, preliminary economic evaluations or feasibility studies pursuant to NI 43-101, and historically such projects have been subject to increased uncertainty and risk of failure.
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