PriceSensitive

Silver Mountain Resources (TSXV:AGMR) announces $8.1M bought deal offering

Mining, The Market Online Deal Room
TSXV:AGMR
03 February 2023 09:00 (EDT)

Source: Silver Mountain Resources Inc.

Silver Mountain Resources (AGMR) has announced a bought deal prospectus offering for gross proceeds of $8,100,000.

The company has entered into an agreement with a syndicate of underwriters led by Sprott Capital Partners in connection with the offering of 27,000,000 units at a price of C$0.30 per unit. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase one additional common share at an exercise price of $0.45 for a period of 36 months.

The company has granted the underwriters an over-allotment option. In the event that the option is fully exercised, the total gross proceeds of the offering will be approximately $9.3 million.

Net proceeds will be used for exploration expenditures and for general and corporate working capital purposes.

The offering is expected to close on or about February 9, 2023, and is subject to the receipt of all necessary corporate and regulatory approvals.

Silver Mountain Resources is a silver explorer and mine developer planning to restart production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirreyna Project in Huancavelica, Peru.

Silver Mountain Resources Inc. (AGMR) opened trading at C$0.35.


Related News