Mining
Wednesday, January 17th, 2024 8:44 pm EDT
Key Points
- Upsized Bought Deal Public Offering by Blackrock Silver Corp.: Blackrock Silver Corp. has increased the size of its previously announced bought deal public offering due to significant investor demand. The upsized offering is now valued at $3.7 million, and it involves the purchase for resale of 18,500,000 units of the company at a price of C$0.20 per unit. Red Cloud Securities Inc. is the lead underwriter and sole bookrunner, overseeing the syndicate of underwriters for the offering.
- Offering Structure and Use of Proceeds: Each unit in the offering consists of one common share of the company and one-half of one common share purchase warrant. The whole warrant allows the holder to purchase one common share at a price of C$0.30 within 36 months after the closing date. The net proceeds from the offering, expected to close on or about January 26, 2024, will be used to complete the final option payment on the company’s flagship Tonopah West project in Nevada. This includes achieving 100% ownership of Tonopah West, advancing metallurgical characterization, engineering evaluation, hydrological assessment, and providing general working capital.
- Regulatory Approvals and Offering Details: The offering is subject to certain conditions, including regulatory approvals such as those from the TSX Venture Exchange. The company has granted the underwriters an option to purchase an additional 15% of the units sold under the offering to cover over-allotments and for market stabilization purposes. The securities offered in the deal will be sold through a prospectus supplement filed in Canadian provinces (excluding Quebec) and may also be sold in the United States on a private placement basis, adhering to exemptions from registration requirements. The securities have not been registered under the U.S. Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.
Due to significant investor demand, Blackrock Silver Corp. has upsized its previously announced bought deal public offering to $3.7-million. Under the upsized Offering, the Underwriters (as defined herein) have agreed to purchase for resale 18,500,000 units of the Company (each, a “Unit”) at a price of C$0.20 per Unit (the “Offering Price”). Red Cloud Securities Inc. is acting as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters (collectively, the “Underwriters”).
Each Unit will consist of one common share of the Company (each, a “Common Share”) and one half of one Common Share purchase warrant (each whole warrant, a “Warrant”). Each whole Warrant shall entitle the holder to purchase one Common Share of the Company at a price of C$0.30 at any time on or before that date which is 36 months after the closing date of the Offering.
The Company has granted to the Underwriters an option exercisable at the Offering Price for a period of 30 days after and including the closing date of the Offering, to purchase for resale up to an additional 15% of the number of Units sold under the Offering to cover over allotments, if any, and for market stabilization purposes. The Offering is expected to close on or about January 26, 2024 (the “Closing Date”) and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
The net proceeds raised under the Offering will be used by the Company to complete the final option payment on the Company’s flagship Tonopah West project (“Tonopah West”) in Nevada, after which the Company will own 100% of Tonopah West, continue with metallurgical characterization, engineering evaluation, and hydrological assessment, as well as for general working capital and corporate purposes.
The Units will be sold by way of a prospectus supplement to be filed in all of the provinces of Canada except Quebec to supplement the short form base shelf prospectus of the Company dated August 4, 2023. The Units may also be sold in the United States on a private placement basis pursuant to one or more exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and in such other jurisdictions outside of Canada and the United States, in each case in accordance with all applicable laws provided that no prospectus, registration statement or similar document is required to be filed in such jurisdiction.
The securities being offered pursuant to the Offering have not been, nor will they be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
About Blackrock Silver Corp.
Backed by gold and silver ounces in the ground, Blackrock is a junior precious metal focused exploration company driven to add shareholder value via the drill bit. With 6.12 million tonnes grading 508.5 g/t silver equivalent[1] at its Tonopah West project, and a new bonanza-grade gold discovery at its Silver Cloud project, the Company has a proven track record of exploration success. In addition to its gold and silver project portfolio, the Company is credited with a lithium discovery, the Tonopah North project, which is under option to a lithium exploration group. Anchored by a seasoned Board of Directors, the Company is focused on its 100% controlled Nevada portfolio of properties consisting of low-sulphidation, epithermal gold and silver mineralization located along the established Northern Nevada Rift in north-central Nevada and the Walker Lane trend in western Nevada.
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