Impact Silver Announces Closing of $3.9 Million Non-Brokered Private Placement Financing

Rhea-AI Summary

IMPACT Silver (ISVLF) has successfully closed a non-brokered private placement financing, raising total proceeds of C$3.93 million. The offering consisted of two components: C$1.66 million from 8,290,000 LIFE units at C$0.20 per unit, and C$2.27 million from 12,626,177 units at C$0.18 per unit.

The LIFE units include one common share and a half-warrant exercisable at C$0.26 for two years, while the standard units comprise one common share and a full warrant exercisable at C$0.24 for three years. The company will use the funds to advance exploration at its Plomosas zinc property and Royal Mines of Zacualpan silver assets, along with operational improvements. The company paid C$64,696.19 in finder's fees and issued 359,423 finder's warrants.

Positive

• Successful raise of C$3.93 million to fund exploration and operational improvements
• No hold period on LIFE portion of the offering, providing immediate trading liquidity
• Strategic focus on high-grade zinc and silver assets exploration

Negative

• Dilution of existing shareholders through issuance of 20,916,177 new shares
• Additional potential dilution from warrants if exercised
• Finder's fees and warrants add to the cost of capital raising

Vancouver, British Columbia--(Newsfile Corp. - May 22, 2025) - IMPACT Silver Corp. (TSXV: IPT) (OTC PINK: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce that it has closed a tranche of the non-brokered private placement financing announced on April 15^th, 2025 and subsequently increased on April 18^th, 2025 (see IMPACT news releases dated April 15, 2025 and April 18, 2025 for details). The financing comprised a LIFE (listed issuer financing exemption) offering and a standard private placement (together referred to as the "Offering").

The Company received aggregate proceeds of C$1,658,000 from the issuance of 8,290,000 LIFE units (the "LIFE Units") at $0.20 per LIFE Unit and C$2,272,711.86 from the issuance of 12,626,177 units (the "Units") of the Company at C$0.18 per Unit for a total of C$3,930,711.86. Each LIFE Unit comprised of one common share and one-half share purchase warrant, with each whole warrant exercisable for two years at $0.26 per common share. Each Unit comprised of one common share and one warrant, exercisable for three years at $0.24 per common share.

The Company intends to use the proceeds from the Offering to follow up recent success in its exploration activity at its Plomosas high-grade zinc(-lead-silver) property, and its prolific silver assets at its legacy Royal Mines of Zacualpan district, as well as invest in operational improvements to improve productivity and throughput.

The LIFE portion of the Offering was made pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 - Prospectus Exemptions (the "LIFE Exemption"). The securities sold under the LIFE Exemption are not subject to a hold period in accordance with applicable Canadian securities laws. A copy of the offering document under the LIFE Exemption dated April 15, 2025, is available electronically on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. The Offering remains subject to final acceptance by the TSX Venture Exchange.

In connection with the Offering, the Company paid an aggregate of $64,696.19 in finder's fees and issued 359,423 finder's warrants (each, a "Finder's Warrant") on the Unit part of the Offering to certain finders. Each Finder's Warrant entitles the holder thereof to purchase one common share of the Company at a price of $0.24 cents per share for three years.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.

ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.

Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km² Zacualpan project where four underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI 43-101 inferred 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 and QP statement); Company engineers are reviewing Capire for a potential restart of operations. Over the past 17 years, IMPACT has placed multiple zones into commercial production and produced over 13 million ounces of silver, generating revenues over $284 million.

Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company recently re-commenced operations and has plans for expansion in 2025. Exploration potential at Plomosas is exceptional along a 6km-long structure. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material from surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.

Qualified Person and NI 43-101 Disclosure

George Gorzynski, P.Eng., an Officer and Director of IMPACT, is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.

On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO

For more information, please contact:
Jerry Huang
CFO | Investor Relations
(604) 664-7707 or inquiries@impactsilver.com
(778) 887 6489 Direct

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. All statements, other than statements of historical facts, included herein, including, without limitation, statements relating to future silver prices, interpretation of drill results, future work plans, proceeds received and use of funds, the timing for closing a further tranche of the Offering, the potential of the Company's projects, and potential and plans for the Plomosas project, are forward looking statements. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the financing.

Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, criminal activity, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices,; pandemics 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 NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.

303-543 Granville Street
Telephone (604) 664-7707

Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
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NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/253172

FAQ

How much money did IMPACT Silver (ISVLF) raise in its May 2025 private placement?

IMPACT Silver raised total proceeds of C$3.93 million through a combined LIFE offering (C$1.66 million) and standard private placement (C$2.27 million).

What is the purpose of IMPACT Silver's C$3.93 million private placement?

The funds will be used to advance exploration at the Plomosas zinc property and Royal Mines of Zacualpan silver assets, and invest in operational improvements for better productivity and throughput.

What are the terms of IMPACT Silver's May 2025 private placement units?

LIFE units (C$0.20) include one share and half-warrant exercisable at C$0.26 for 2 years. Standard units (C$0.18) include one share and full warrant exercisable at C$0.24 for 3 years.

How many new shares did IMPACT Silver (ISVLF) issue in the May 2025 financing?

IMPACT Silver issued a total of 20,916,177 new shares, comprising 8,290,000 LIFE units and 12,626,177 standard units.