Defiance Silver Closes Initial Tranche of Private Placement

Rhea-AI Summary

Defiance Silver Corp (TSXV: DEF) has closed the first tranche of a non-brokered private placement, issuing 3,661,000 Units at C$0.20 per Unit for gross proceeds of $732,200. Each Unit consists of one common share and one-half warrant, with each whole warrant exercisable at C$0.35 for 24 months.

The company will use the proceeds for exploration and working capital. The offering included finder's fees of $24,132 and 120,660 non-transferable warrants exercisable at C$0.20 for two years. The securities are subject to a four-month hold period.

Additionally, the company clarified that for its previous private placement which closed in July 2024, raising $3,222,615 from 16,113,075 units, the total cash commissions paid were $149,690.60.

Positive

• Raised $732,200 in new capital through private placement
• Previous placement in July 2024 successfully raised $3.22 million

Negative

• Significant dilution through issuance of 3,661,000 new units
• Additional potential dilution from warrant exercises

Vancouver, British Columbia--(Newsfile Corp. - January 20, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") announces that it has closed a first tranche of a non-brokered private placement (the "Offering") of units of the Company (the "Units") at a price of C$0.20 per Unit (the "Offering Price"). In aggregate, the Company issued 3,661,000 Units for aggregate gross proceeds of $732,200.

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$0.35 at any time on or before the date which is 24 months after the Closing Date.

The net proceeds of the Offering will be used by the Company for exploration and general working capital purposes. Under applicable securities legislation and the policies of the TSX Venture Exchange, the securities issued in this Offering are subject to a four-month hold period from the issuance of the Units.

In connection with the closing of the Offering, the Company paid finder's fees comprised of an aggregate cash commission $24,132 and an aggregate of 120,660 non-transferable warrants (each a "Finder Warrant") to arm-length finders. Each Finder Warrant entitles the holder thereof to purchase common shares of the Company at a price of C$0.20 per common share for a period of two (2) years following the Closing Date, the whole in accordance with the rules and policies of the TSX Venture Exchange.

The Offering remains subject to the final approval of the TSX Venture Exchange.

Clarification of July 29, 2024 news release

In relation to the Company's private placement which closed in tranches on July 12, 2024 and July 29, 2024, where the Company raised an aggregate of $3,222,615.00 from the issuance of 16,113,075 units, the Company wishes to rectify its news release of July 29, 2024 and confirm the aggregate cash commissions paid as part of the aforementioned private placement totalled $149,690.60.

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 advance our projects through capital-efficient exploration focused on resource growth and new mineral discoveries.

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.

www.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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/237786

FAQ

How much did Defiance Silver (DNCVF) raise in its latest private placement?

Defiance Silver raised $732,200 in the first tranche of its private placement by issuing 3,661,000 Units at C$0.20 per Unit.

What is the exercise price and term for the warrants in DNCVF's January 2025 offering?

The warrants are exercisable at C$0.35 per share for a period of 24 months after the closing date.

How will Defiance Silver (DNCVF) use the proceeds from the January 2025 private placement?

The net proceeds will be used for exploration activities and general working capital purposes.

What finder's fees did DNCVF pay for the January 2025 private placement?

The company paid $24,132 in cash commissions and issued 120,660 non-transferable warrants exercisable at C$0.20 for two years.

How much did Defiance Silver raise in its July 2024 private placement?

The company raised $3,222,615 through the issuance of 16,113,075 units in July 2024.