Defiance Silver Closes Second Tranche of Private Placement

Rhea-AI Summary

Defiance Silver Corp (TSXV: DEF) has successfully closed the second tranche of its non-brokered private placement, issuing 7,803,000 Units at C$0.20 per Unit for gross proceeds of C$1,560,600. This follows the first tranche closure on January 20, 2025, which raised C$732,200. The company plans a third tranche to reach total proceeds of C$3,300,000.

Each Unit consists of one common share and half a warrant, with each full warrant exercisable at C$0.35 for 24 months. The company paid finder's fees of C$75,336 and issued 376,680 non-transferable warrants. Proceeds will fund exploration and working capital. Securities are subject to a four-month hold period, and the offering awaits final TSX Venture Exchange approval.

Positive

• Successful fundraising of C$1,560,600 in second tranche
• Total expected proceeds of C$3,300,000 across three tranches
• Warrant structure provides potential additional future funding at C$0.35 per share

Negative

• Dilution of existing shareholders through new share issuance
• Additional cash expenses through finder's fees

Vancouver, British Columbia--(Newsfile Corp. - February 11, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") announces that it has closed a second 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 7,803,000 Units for aggregate gross proceeds of C$1,560,600. The first tranche ("First Tranche") of the non-brokered private placement offering comprising 3,661,000 Units for gross proceeds of C$732,200 closed on January 20, 2025 (see news release dated January 20th, 2025).

In addition, the Company intends to close a third and final tranche ("Third Tranche") of the Offering to bring the aggregate gross proceeds from the First, Second and Third Tranches to C$3,300,000.

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 Second Tranche, the Company paid finder's fees comprised of an aggregate cash commission $75,336 and an aggregate of 376,680 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.

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/240386

FAQ

How much did Defiance Silver (DNCVF) raise in the second tranche of its private placement?

Defiance Silver raised C$1,560,600 in the second tranche by issuing 7,803,000 Units at C$0.20 per Unit.

What is the exercise price and term for the warrants in DNCVF's private placement?

Each whole warrant can be exercised at C$0.35 per share for a period of 24 months after the closing date.

What are the total expected proceeds from all three tranches of DNCVF's private placement?

The company expects to raise aggregate gross proceeds of C$3,300,000 from all three tranches combined.

How will Defiance Silver (DNCVF) use the proceeds from this 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 second tranche of the private placement?

The company paid C$75,336 in cash and issued 376,680 non-transferable finder warrants exercisable at C$0.20 for two years.