Silver Elephant Announces $490,000 Non-Brokered Private Placement and Appoints Chief Legal Officer

Rhea-AI Summary

Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) announces a non-brokered private placement to raise $490,000 through the sale of 1,000,000 units at $0.49 per unit. Each unit includes one common share and one warrant, with warrants exercisable at $0.55 for three years. CEO John Lee will subscribe for 500,000 units ($245,000). Proceeds will be used for general corporate purposes.

The company also appoints Alex Bayer as Chief Legal Officer, effective October 2, 2024. Bayer, a corporate securities lawyer with over 15 years of experience in the mining sector, will lead all legal matters for Silver Elephant. Additionally, Sara Knappe is appointed as Corporate Secretary, replacing Marion McGrath.

Positive

• Private placement to raise $490,000 for general corporate purposes
• CEO John Lee subscribing for $245,000 worth of units, showing insider confidence
• Appointment of experienced Chief Legal Officer with mining sector expertise

Negative

• Potential dilution of existing shareholders due to private placement

Vancouver, British Columbia--(Newsfile Corp. - October 7, 2024) - Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE: 1P2) ("Silver Elephant" or the "Company") announces that it proposes to undertake a non-brokered private placement (the "Private Placement") to raise gross proceeds of $490,000 through the sale of 1,000,000 units (the "Units") at a price of $0.49 per unit. Each unit consists of one common share of the Company ("Share") and one share purchase warrant with each warrant (the "Warrant") entitling the holder to purchase one additional Share at a price of $0.55 per Share for a period of three years from issuance (the "Private Placement").

The securities issued as part of the Private Placement will be subject to a regulatory hold period of four months plus one day from the date of issue.

Proceeds of the Private Placement are expected to be used for general corporate purposes.

John Lee, CEO and a Director of the Company, will be subscribing for 500,000 Units for gross proceeds of $245,000. The issuance of Units to John Lee pursuant to the Private Placement will be considered a related party transaction within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relies on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Private Placement by John Lee will not exceed 25% of the fair market value of the Company's market capitalization. The Company will file a material change report in respect of the related party transactions in connection with the Private Placement.

The Private Placement is subject to approval by the Toronto Stock Exchange ("TSX").

The Company is also pleased to announce the appointment of Alex Bayer as its Chief Legal Officer, to lead all legal matters for the Company, effective as of October 2, 2024.

Alex is a seasoned corporate securities lawyer with over 15 years of experience, specializing in the mining sector. He has extensive expertise in advising mining companies on a wide range of matters, including public and private financings, mergers and acquisitions, regulatory compliance, and corporate governance. Known for a deep understanding of securities laws and the unique challenges of the mining industry, Alex has successfully guided companies through complex transactions and strategic initiatives, including bringing mines into commercial production, while ensuring legal and regulatory requirements are met.

Mr. Bayer's engagement as Chief Legal Officer is through his consulting company, Bayer Law Corporation.

The Company also appoints Sara Knappe as Corporate Secretary to replace Ms. Marion McGrath. The Company would like to thank Ms. McGrath for her valuable contributions during her tenure with the Company.

About Silver Elephant Mining Corp.

Silver Elephant is a silver mining company, with its flagship Pulacayo-Paca silver project in production since October 2023 in Bolivia.

Further information on Silver Elephant can be found at www.silverelef.com.

SILVER ELEPHANT MINING CORP.

ON BEHALF OF THE BOARD

"John Lee"
Executive Chairman

For more information about Silver Elephant, please contact Investor Relations:
+1.604.569.3661 ext. 101
info@silverelef.com
www.silverelef.com

Neither the TSX nor its Regulation Services Provider (as that term is defined in policies of the TSX) 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/225776

FAQ

What is the price per unit in Silver Elephant's private placement?

The price per unit in Silver Elephant's private placement is $0.49.

How many units is Silver Elephant (SILEF) offering in its private placement?

Silver Elephant is offering 1,000,000 units in its private placement.

What is the exercise price of the warrants in Silver Elephant's private placement?

The exercise price of the warrants in Silver Elephant's private placement is $0.55 per share.

Who has been appointed as Chief Legal Officer of Silver Elephant Mining Corp?

Alex Bayer has been appointed as Chief Legal Officer of Silver Elephant Mining Corp, effective October 2, 2024.