Defiance Silver Closes Initial Tranche of Private Placement
- Defiance Silver Corp. successfully closed the first tranche of its non-brokered private placement, generating C$1,094,000 in gross proceeds.
- The Offering consisted of Units priced at C$0.10 per Unit, with each Unit comprising one Common Share and one-half of a Warrant.
- The net proceeds from the Offering will be allocated towards exploration activities and general working capital purposes.
- Insiders, including the Chairman and CEO, purchased Units in the Offering, demonstrating confidence in the Company's prospects.
- Shares were also issued to extinguish debt following TSX Venture Exchange approval.
- The securities issued in the Offering are subject to a four-month hold period, expiring on June 28, 2024.
- A provision allows for the acceleration of the Warrants' expiry date under certain conditions.
- The Insiders' transactions are considered related party transactions but are exempt from formal valuation and minority approval requirements.
- The Chairman and CEO, along with other Insiders, now hold significant Common Shares and Warrants in the Company.
- None.
Vancouver, British Columbia--(Newsfile Corp. - February 28, 2024) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") announces that it has closed on February 27, 2024 (the "Closing Date") the first tranche of its previously announced non-brokered private placement (the "Offering") of units of the Company (the "Units") at a price of C
Marketed Offering
Each Unit is comprised of one common share of the Company (each a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will be exercisable by the holder thereof to acquire one common share of the Company (each a "Warrant Share") at a price of C
If at any time after the date which is four (4) months and one (1) day following the Closing Date, the closing price of the Common Shares on the TSX Venture Exchange, or such other stock exchange on which the Common Shares are listed or quoted, is equal to or greater than
Related Party Transaction
Chris Wright, Chairman and CEO of the Company, purchased 600,000 Units through a related entity controlled by Mr. Wright, for a total consideration of
James Bergin, Director of the Company, purchased 300,000 Units for a total consideration of
George Cavey, Vice President, Exploration and Director of the Company, purchased 500,000 Units through its related entity, OreQuest Consultants Ltd, for a total consideration of
Chris Wright, James Bergin, and George Cavey are hereinafter referred to collectively as the "Insiders".
The Insiders are considered "related parties" and "insiders" of the Company for the purposes of applicable securities laws and stock exchange rules. The subscription and issuance of common shares for the Insiders constitutes related party transactions, but are exempt from the formal valuation and minority approval requirements of Regulation 61-101 - Protection of Minority Security Holders in Special Transactions as neither the fair market value of the common shares and common share purchase warrants issued to each of the Insiders, nor the consideration paid by such Insiders, exceeds
Shares for Debt
Further to the Company's news release of January 10, 2024 and upon receipt of TSX Venture Exchange approval on February 6, 2024, the Company confirms that it has now issued 337,549 common shares extinguishing debt in the amount of
About Defiance Silver Corp.
Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to expand the San Acacio and Tepal projects to become premier Mexican silver and gold deposits.
On behalf of Defiance Silver Corp.
"Chris Wright"
Chairman of the Board
For more information, please contact: Investor Relations at +1 (604) 343-4677 or via email at info@defiancesilver.com.
Suite 2900-550 Burrard Street
Vancouver, BC V6C 0A3
Canada
Tel: +1 (604) 343-4677
Email: info@defiancesilver.com
Disclaimer
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.
Caution Regarding Forward-Looking Information
Information contained in this news release which are not statements of historical facts may be "forward-looking information" for the purposes of Canadian securities laws. Such forward-looking information involves risks, uncertainties and other factors that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward looking information. The words "believe", "expect", "anticipate", "contemplate", "plan", "intends", "continue", "budget", "estimate", "may", "will", "schedule", "understand" and similar expressions identify forward-looking information. These forward-looking statements relate to, among other things: the Company's ability to close a second tranche of the Offering.
Forward-looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable by Defiance, are inherently subject to significant technical, political, business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information. Factors and assumptions that could cause actual results or events to differ materially from current expectations include, among other things: political risks associated with the Company's operations in Mexico.
There can be no assurances that forward-looking information and statements will prove to be accurate, as many factors and future events, both known, and unknown could cause actual results, performance, or achievements to vary or differ materially from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements contained herein or incorporated by reference. Accordingly, all such factors should be considered carefully when making decisions with respect to Defiance, and prospective investors should not place undue reliance on forward looking information. Forward-looking information in this news release is made as at the date hereof. The Company assumes no obligation to update or revise forward-looking information to reflect changes in assumptions, changes in circumstances or any other events affecting such forward-looking information, except as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/199628
FAQ
What was the price per Unit in Defiance Silver Corp.'s private placement Offering?
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Who purchased Units in the private placement Offering?
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