|August 20, 2020|
Impact Silver Announces Closing of $9.5 Million Financing
|NOT FOR DISTRIBUTION TO U.S. NEWS SERVICESOR FOR DISSEMINATION IN THE UNITED STATES
IMPACT Silver Corp. (TSX-V: IPT) (OTC PINK: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce that it has closed the brokered financing previously announced on July 30th, and upsized on August 7th, 2020 (the "Offering"). Red Cloud Securities Inc. acted as lead agent and sole bookrunner, on behalf of a syndicate, including Canaccord Genuity Corp. and Mackie Research Capital Corporation (collectively, the "Agents").
The Company received an aggregate proceeds of C$9,546,641 from the issuance of 10,049,096 units (the "Units") of the Company at C$0.95 per unit. Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant is exercisable to acquire one Common Share (a "Warrant Share") at a price of C$1.30 per Warrant Share for a period of 24 months from the closing of the Offering.
The Company intends to use the net proceeds from the Offering for exploration, development and general corporate purposes.
Frederick Davidson, CEO and President of the Company comments, "After several lean years for the silver sector, we are seeing the long awaited surge in silver prices and correction to the gold silver ratio. We are pleased to finally be able to close a round of financing sufficient to realize the potential of the Guadalupe land package and to consider near-term expansion to our production profile."
In consideration for their services, the Company has paid the Agents a cash commission equal to 6.0% of the gross subscription proceeds raised from certain subscribers in the Offering. Additionally, the Company granted the Agents an aggregate of 598,089 non-transferable broker warrants. Each broker warrant entitles the holder to acquire one Unit at a price of $0.95 per Unit until August 20, 2022.
The securities issued under the Offering are subject to a standard hold period of four months and one day, expiring on December 21, 2020, all in accordance with applicable securities laws.
About IMPACT Silver
IMPACT Silver Corp. is a successful silver-gold explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 211km2 in central Mexico with excellent infrastructure and labor force. Over the past 15 years, IMPACT has produced over 10 million ounces of silver, generating revenues over $194 million, with no long-term debt. At the Royal Mines of Zacualpan Silver District three underground silver mines and one open pit mine feed the central Guadalupe processing plant. To the south, in the Mamatla District the Capire processing pilot plant is adjacent to an open pit silver mine with a mineral resource of over 4.5 million oz silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016 for details) that is awaiting higher silver prices to be restarted. With over a decade of exploration successes leading to production cash flows, IMPACT has shown the Zacualpan District to be endowed with many high grade epithermal silver-gold zones.
Additional information about IMPACT and its operations can be found on the Company website at www.impactsilver.com
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
Frederick W. Davidson
For more information, please contact:
Neither 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.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement, except as required by law.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI43-101 the Company is required to disclose that it has not based its production decisions on NI43-101-compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
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