Silver Mountain Announces $7.5 Million Public Offering

TORONTO, April 16, 2024 (GLOBE NEWSWIRE) -- Silver Mountain Resources Inc. (TSXV: AGMR) (OTCQB: AGMRF) (“Silver Mountain” or the “Company”), is pleased to announce that it has entered into an agreement pursuant to which Eight Capital and SCP Resource Finance LP, as joint bookrunners and co-lead agents (together, the “Agents”), will offer for sale up to 68,200,000 units of the Company (the “Units”) on a best efforts basis (the “Offering”), at an offering price of $0.11 per Unit, for aggregate gross proceeds of up to $7,502,000. The Offering will be conducted pursuant to an agency agreement to be entered into on or before April 18, 2024 among the Company and the Agents.

Each Unit will be comprised of one common share in the capital of the Company (each a “Common Share”) and one Common Share purchase warrant (each a “Warrant”). Each Warrant shall entitle the holder to acquire an additional Common Share for a period of 48 months, at an exercise price of $0.135.

The Company has granted the Agents an option (the “Over-Allotment Option”) exercisable in whole or in part, to purchase up to an additional 15% of the number of Units (including the components thereof) of the Offering on the same terms, at any time up to 30 days following the Closing Date.

The Units will be offered in all provinces and territories of Canada, except Québec, by way of a prospectus supplement to the Company’s short form base shelf prospectus dated November 9, 2022, to be filed in all provinces and territories of Canada. The Units may also be offered in the United States on a private placement basis pursuant to applicable exemptions from the registration requirements of the United States Securities Act of 1933, as amended (the “1933 Act”) and applicable state securities laws, and in other offshore jurisdictions provided that no prospectus filing or comparable obligation arises.

The Offering is expected to close on or about April 24, 2024 (the “Closing Date”) and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the TSX Venture Exchange.

The Company intends to use the proceeds of the Offering for the development of the Reliquias mine, and for working capital and general corporate purposes.

This press 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. The securities being offered have not been, nor will they be, registered under the 1933 Act 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 of the 1933 Act, and applicable state securities laws.