Silver Mountain Mines Announces Closing of its Private Placement
CALGARY, Alberta, Oct. 15, 2020 (GLOBE NEWSWIRE) -- Silver Mountain Mines Inc. (TSX-V: SMM) (the "Company") announces the closing of the non-brokered offering of Common Units and Flow-Through Units, as announced on August 4th, 2020. The Company raised $198,000.00 in total.
Each Flow-Through Unit, priced at $0.25/unit, consisted of one common share of the Company issued on a flow-through basis ("Flow-Through Share") and one (1) common share purchase warrant. Each common share purchase warrant ("Warrant") entitles the holder to acquire, subject to adjustment, one Common Share at a price of $0.35 per share on or before 4:30 p.m. (Calgary time) on or before December 31, 2023 (the "Expiry Date").
Each Common Shares Unit, priced at $0.25/unit, consisted of one common share of the Company ("Common Share") and one (1) Common Share purchase warrant. Each common share purchase warrant ("CS Warrant") entitles the holder to acquire, subject to adjustment, one Common Share at a price of $0.35 per share on or before 4:30 p.m. on the Expiry Date.
Certain directors of the Company purchased a total of 140,000 Units under the private placement. The placement to those persons constitutes a "related party transaction" within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61101 - Protection of Minority Security Holders in Special Transactions ("MI 61101"). The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61101 in respect of related party participation in the 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 related parties, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101). Further details will be included in a material change report to be filed by the Company. The material change report will not be filed more than 21 days prior to closing of the placement due to the timing of the announcement of the amended private placement and closing occurring in less than 21 days.
About Silver Mountain Mines Inc. (TSX-V: SMM)
Silver Mountain Mines Inc. is a Canadian based exploration and development company with 100% ownership of a 9,300 hectare property centered on the historical silver rich Ptarmigan Mine in south eastern, British Columbia. The property hosts two styles of mineralization: silver rich, high-grade polymetallic epithermal veins and manto style massive / semi-massive sulphide mineralization.
For further information on Silver Mountain Mines Inc. please visit the Company’s website and SEDAR () or contact Mr. Steve Konopelky, President & CEO of the Company (403-229-9140).
Neither the TSX-Venture Exchange nor its Regulation Services Provider, as per the term defined in the policies of the TSX Venture Exchange, accepts responsibility for the adequacy or accuracy of the release.
ON BEHALF OF THE BOARD
“Signed”
Steve Konopelky
Director
