Americas Gold and Silver Corporation Announces Closing of Financings
Americas Gold and Silver (USAS) successfully closed an offering, raising $7.8 million through the sale of 21,667,000 Units at $0.30 per Unit. The Company also issued additional Units through private placements, totaling 25,000,000 Units. The net proceeds will be used for operational needs and expanding silver-copper ore production at its U.S. and Mexico operations.
The recent closure of Americas Gold and Silver Corporation's offering, accumulating $7.8 million in gross proceeds , is a strategic financial maneuver that warrants a closer look from an investment perspective. The company's decision to sell 21.667 million Units at $0.30 each , with an additional 3.333 million Units through a non-brokered private placement, indicates a pursuit of capital infusion to bolster its working capital. This is particularly significant for the Cosalá Operations and Galena Complex , as it suggests an impending scale-up in silver-copper ore production.
The inclusion of a common share purchase warrant in each Unit, with an exercise price of C$0.40 for a 36-month period, provides an incentive mechanism that could potentially lead to further capital inflows if the company's stock performs well, thereby diluting existing shares but also providing a cash buffer without immediate debt service requirements. This strategic choice reflects a balance between immediate capital needs and future financing flexibility.
Investors should note the potential for share dilution but also consider the growth opportunities that the increased capital could unlock. The success of this offering and the subsequent deployment of funds into the company's operations will be critical to watch, as it could significantly impact the company's financial health and stock performance.
Examining Americas Gold and Silver Corporation's recent financial activities from a market dynamics perspective, the timing and structure of the offering provide insights into the company's market positioning. The mining sector is capital-intensive and the ability to secure funding through market offerings is often indicative of investor confidence and market appetite for the industry.
The price point of $0.30 per Unit is reflective of current market valuation and investor sentiment towards the company. The fully exercised Agent's option suggests a favorable reception among institutional participants, which could be a positive signal to the market. The earmarking of funds for operational transitions towards silver-copper ore production aligns with market trends favoring metals with industrial applications, such as copper, which is in high demand for its use in electric vehicles and renewable energy technologies.
It is important for stakeholders to monitor commodity prices and their effects on the company's revenue potential. Shifts in the silver and copper markets could either amplify the impact of this capital raise or dampen the expected benefits, depending on how well the company can capitalize on these market trends.
03/27/2024 - 11:52 AM
Not for distribution to United States newswire services or for dissemination in the United States
TORONTO --(BUSINESS WIRE)--
Americas Gold and Silver Corporation (TSX: USA , NYSE American: USAS) (the “Company”) is pleased to announce that it has closed its offering as previously announced in its press releases dated March 20, 2024 and March 21, 2024 for total aggregate gross proceeds of $7,800,000
The Company entered into an agency agreement (the “Agency Agreement”) with Eight Capital (the “Agent”), as sole agent and bookrunner, under which the Company sold, on a brokered basis, 21,667,000 units of the Company (“Units”) at $0.30 $0.30 $0.30
Each Unit is comprised of one common share of the Company (each, a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant entitles the holder thereof to purchase one Common Share (each, a “Warrant Share”) at an exercise price of C$0.40 per Warrant Share for a period of 36 months following the closing of the Offering. The Offering remains subject to the final acceptance of the TSX.
The net proceeds of the Offering will be used for working capital requirements at the Company’s Cosalá Operations and Galena Complex, in order to transition to additional silver-copper ore production at the Company’s operations in the U.S. and Mexico , and for general and administrative purposes.
The offering document related to the LIFE Offering can be accessed under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.americas-gold.com .
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high-growth precious metals mining company with multiple assets in North America . The Company owns and operates the Cosalá Operations in Sinaloa, Mexico , manages the 60% -owned Galena Complex in Idaho, USA , and is re-evaluating the Relief Canyon mine in Nevada, USA . The Company also owns the San Felipe development project in Sonora, Mexico . For further information, please see SEDAR or www.americas-gold.com .
Cautionary Statement on Forward-Looking Information:
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful, including any of the securities in the United States of America . The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to, or for account or benefit of, U.S. Persons (as defined in Regulation S under the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration requirements is available.
This news release includes certain forward-looking statements concerning the use of proceeds of the Offering, the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedarplus.ca . Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240326787157/en/
Stefan Axell
Darren Blasutti
Source: Americas Gold and Silver Corporation
How much did Americas Gold and Silver raise through the offering?
Americas Gold and Silver raised $7,800,000 through the offering.
How many Units were sold at $0.30 per Unit in the offering?
21,667,000 Units were sold at $0.30 per Unit in the offering.
What will the net proceeds of the offering be used for?
The net proceeds of the offering will be used for working capital requirements at the Company’s Cosalá Operations and Galena Complex, transitioning to additional silver-copper ore production at the Company’s U.S. and Mexico operations, and for general and administrative purposes.
Where can the offering document related to the LIFE Offering be accessed?
The offering document related to the LIFE Offering can be accessed under the Company’s profile at www.sedarplus.ca and on the Company’s website at www.americas-gold.com.
