Americas Silver Corporation Announces Completed Private Placement

TORONTO, ONTARIO--(Marketwired - Aug. 28, 2015) - Americas Silver Corporation (TSX:SPM)(OTCQX:SMNPF) ("Americas Silver" or the "Company") is pleased to announce that it has closed its previously announced private placement offering and completed a change of auditors.

Completed Private Placement

The aggregate gross proceeds of the private placement were approximately CDN $2 million and were received prior to closing. The Company issued 11,027,555 units ("Units") at a price of CDN $0.18 per Unit, with 5,555,555 Units allocated to the non-brokered portion and 5,472,000 Units allocated to the brokered portion of the offering. Each Unit consists of one common share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant entitles the holder to acquire one common share at an exercise price of CDN $0.25 for a period of 36 months from the close of the placement.

Medalist Capital Ltd. acted as agent (the "Agent") for the brokered portion of the Private Placement and received a commission in connection with their services of: i) a cash payment of CDN $60,000; ii) 140,000 common shares of the Company; and iii) 350,000 broker warrants. Each broker warrant entitles the Agent to purchase a common share of the company at a price of $0.18 for a period of 36 months following the date of closing.

As previously announced, the Company has also agreed to terms regarding subordinated debt of US$1 million with a certain lender in the form of secured second lien notes (the "Subordinated Notes") with a 12 month term. Interest on the Subordinated Notes will accrue from the closing at a rate of 12% and will be payable monthly in cash beginning the sixth month following closing with the balance due on maturity. The Subordinated Notes will be secured by all assets, other than real property assets, which are charged by the existing first lien loan and will rank second behind the existing first lien loan. The debt may be repaid at any time during the term at 100% of principle plus accrued interest to the date of repayment. The Company will issue Warrants to the lender on the same terms, including coverage ratio, referenced above for the Private Placement adjusted for the USD/CAD exchange ratio at the time of issuance on closing. The financing is expected to close within 30 days of this announcement and is subject to a number of conditions precedent including, but not limited to, satisfactory completion of due diligence and entering into definitive transaction documents.