Blackrock Silver closes $4.38-million private placement

Mar 17, 2023

2023-03-17 10:17 ET – News Release


Mr. Andrew Pollard reports


Blackrock Silver Corp. has closed its previously announced brokered private placement offering (see March 3, 2023, news release) for aggregate gross proceeds of $4,385,166 consisting of 11,851,800 units of the company at a price of 37 cents per unit. Each unit comprises one common share of the company and one-half of one common share purchase warrant of the company. Each whole warrant entitles the holder thereof to acquire one common share at a price of 50 cents per common share until March 17, 2026.

All of the Units offered in the offering were offered to purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106 – Prospectus Exemptions and are not subject to resale restrictions in Canada under applicable Canadian securities laws, except where required by the TSX Venture Exchange (“TSXV”) for the insiders noted below.

The Offering was led by PI Financial Corp. and Red Cloud Securities Inc. as co-lead agents and joint bookrunners on behalf of a syndicate of agents including Canaccord Genuity Corp. and Research Capital Corporation (referred to collectively as the “Agents”). In connection with the Offering, the Company paid to the Agents a cash commission of $263,109.96 and issued to the Agents 711,108 Common Share purchase warrants (the “Compensation Warrants”). Each Compensation Warrant entitles the holder thereof to acquire one Common Share at a price per Common Share equal to the Offering Price until March 17, 2026. The Compensation Warrants and underlying Common Shares are subject to a four-month hold period ending on July 18, 2023.

The net proceeds raised from Offering will be used by the Company: (i) to fund the US$700,000 option payment due on April 2, 2023, in respect of the Company’s Tonopah West project; (ii) to fund the US$500,000 lease payment due on October 27, 2023, in respect of the Company’s Silver Cloud project; (iii) for exploration of the Company’s portfolio of silver and gold projects in Nevada; and (iv) for working capital and general corporate purposes.

The participation of two directors of the Company in the Offering constituted a “related party transaction”, within the meaning of TSXV Policy 5.9 and Multilateral Instrument 61-101 (“MI 61-101”). The Company has relied on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the related party participation in the Private Placement as neither the fair market value (as determined under MI 61- 101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the interested parties, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101). The securities issued to the directors of the Company under the Offering are subject to a four-month hold period ending on July 18, 2023, in accordance with the policies of the TSXV.

The Offering remains subject to final approval of the TSXV.

About Blackrock Silver Corp.

Backed by gold and silver ounces in the ground, Blackrock is a junior precious metal-focused exploration company driven to add shareholder value via the drill bit. With 2.97 million tonnes grading 446 g/t silver equivalent[1] at its Tonopah West project, and a new bonanza-grade gold discovery at Silver Cloud, the Company has a proven track record of exploration success. In addition to its gold and silver project portfolio, the Company is credited with a lithium discovery, the Tonopah North project, which is under option to a major lithium exploration group. Anchored by a seasoned Board, the Company is focused on its 100% controlled Nevada portfolio of properties consisting of low-sulphidation, epithermal gold, and silver mineralization located along the established Northern Nevada Rift in north-central Nevada and the Walker Lane trend in western Nevada.

We seek Safe Harbor.

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