Hi Ho closes final tranche of financing for $944,002

Sep 14, 2017

2017-09-13 15:47 ET – News Release

Mr. William Jorgenson reports

HI HO SILVER RESOURCES ANNOUNCES CLOSING OF FINAL TRANCHE OF PRIVATE PLACEMENT, ISSUANCE OF SECURITIES FOR SERVICES AND DEBT, REDUCTION OF EXERCISE PRICE AND EXTENSION OF EXPIRY DATES OF 9,400,026 WARRANTS AND NON- BROKERED PRIVATE PLACEMENT

Hi Ho Silver Resources Inc. has closed the final tranche of the non-brokered private placement that raised total gross proceeds of $944,002.60 through sale of 9,440,026 units at a price of 10 cents per unit. Each unit is comprised of one postconsolidation common share of the issuer and one transferable common share purchase warrant to purchase one additional share at an exercise price of 30 cents per share for a period of one year from the closing date.

The company is proposing to reduce the exercise price and extend the expiry dates of 6.02 million warrants issued through the private placement. The original terms of the warrants are as follows:

2,930,000 warrants are due to expire Nov. 09, 2017;
545,000 warrants are due to expire Dec. 17, 2017;
1,295,000 warrants are due to expire Feb. 14, 2018;
500,000 warrants are due to expire June 13, 2018;
750,000 warrants are due to expire July 29, 2018.

All of the above warrant expiry dates will be extended for one full year from their original expiry dates and the new exercise price of the warrants will be reduced from 30 cents to 20 cents.

The company also issued 2,493,740 units at a deemed price of 10 cents per unit to certain directors and officers of the company as payment for services rendered. Each of these units is comprised of one share and one transferable common share purchase warrant to purchase one additional share at an exercise price of 30 cents per share for a period of two years from the date of issuance.

The company also issued 3,405,350 shares at a deemed price of 10 cents to a consultant of the company in order to settle outstanding debt owed to the consultant.

The proceeds of the private placement will be used for general working capital. All of the 750,000 units issued in the final tranche of the private placement, the directors and officers’ units and the settlement of debt shares will be subject to a statutory four-month hold period, expiring on Nov. 28, 2017.

The company is also undertaking another non-brokered private placement of up to 10 million units at a price of 10 cents per unit to raise up to $1-million. Each of these units will consist of one share and one non-transferable common share purchase warrant. Each warrant will entitle the holder to purchase one share at a price of 30 cents for one year following the date of closing of the 2017 private placement. The proceeds of the 2017 private placement will be used for general working capital.

The company may pay cash finder’s fees in connection with the 2017 private placement.

About Hi Ho Silver Resources Inc.

Hi Ho Silver is a Vancouver-based mineral exploration company dedicated to the exploration and development of precious and base-metal mineral deposits in North America and elsewhere.

We seek Safe Harbor.

http://www.hihoresources.com/news-releases/