Americas Silver (USA-T) June 14, '16 is pleased to announce that, further to its press releases on May 24, 2016 and June 9, 2016, it has closed the concurrent private placement of 38,525,000 subscription receipts (the "Subscription Receipts") at a price of C$0.30 per Subscription Receipt, for total gross proceeds of approximately C$11.6 million (the "Offering"). The additional proceeds from the Offering will be used to address the equity component of the overall financing package for San Rafael, with the remaining funding subject to advanced discussions with potential lenders and offtakers.
Combined with the original private placement, the Company has raised aggregate gross proceeds of approximately C$32 million. The net proceeds of the original private placement and Offering are expected to be used by the Company for capital programs at the Galena Complex and San Rafael Property, debt repayment, working capital and general corporate purposes.
The Offering was co-led by GMP Securities L.P. ("GMP") and Medalist Capital Ltd., on behalf of a syndicate of agents including Cormark Securities Inc. and Mackie Research Capital Corporation.
Each Subscription Receipt will be deemed to be exchanged upon satisfaction of the Release Conditions (as defined below) on or before September 19, 2016 (the "Release Deadline"), without payment of any additional consideration, for one unit (each a "Unit") of the Company being comprised of one common share of the Company (each a "Common Share") and one quarter of one Common Share purchase warrant of the Company (each whole warrant a "Warrant"). Each whole Warrant will entitle the holder thereof to acquire one Common Share (each a "Warrant Share") at an exercise price of C$0.39 per Warrant Share until June 14, 2021.
The gross proceeds of the Offering, less the expenses of the Agents, have been placed in escrow and will be released upon the Company having obtained shareholder approval of the Offering in accordance with applicable corporate and securities laws, including approval of the Toronto Stock Exchange and completion of certain other administrative matters (the "Release Conditions") on or before the Release Deadline (the "Escrow Release"). In the event of such Escrow Release, the Company will receive the escrowed funds, less the Agents' commission with respect to the Offering, any remaining expenses of the Agents and the Agents' pro rata portion of the interest earned on the escrowed proceeds. If the Release Conditions are not satisfied on or before the Release Deadline, or if prior to such date the Company advises GMP or announces to the public that it does not intend to satisfy the Release Conditions, the escrow agent will return to each holder of the Subscription Receipts, an amount equal to the aggregate purchase price for the Subscription Receipts held by such holder, together with a pro rata portion of the interest earned on the escrowed proceeds.
All securities issued in the Offering are subject to a statutory four month hold period.
The securities described herein have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
About Americas Silver Corporation
The Company is a silver mining company focused on growth in precious metals from its existing asset base and execution of targeted accretive acquisitions. It owns and operates the Cosalá Operations in Sinaloa, Mexico and the Galena Complex in Idaho, USA.
For further information please see SEDAR or www.americassilvercorp.com.
Americas Silver Corporation
Darren Blasutti
President and CEO
416-848-9503
www.americassilvercorp.com |
