GR Silver Mining closes $20-million offering

Executive Summary

• GR Silver Mining Ltd. closed a bought‑deal private placement raising approximately $20 million at $0.30 per unit, including full exercise of the overallotment option.
• Proceeds will fund an aggressive exploration and drilling program at the Plomosas project in Mexico, working capital, and general corporate purposes, positioning 2026 as a “game‑changing” year.
• The transaction included issuance of common shares with half‑share purchase warrants (exercise price $0.42) and broker warrants; underwriters received a cash commission of $1.20 million.

Key Details

• Units sold: 66,666,832 units at $0.30 per unit → gross proceeds $20,000,049.60.
• Overallotment exercised: 8,332,833 units (≈$2.5 M) by Research Capital Corp., the sole bookrunner and co‑lead underwriter.
• Unit composition: 1 common share + ½ common share purchase warrant per unit.
• Warrant terms: Each warrant allows purchase of one common share at $0.42, exercisable any time until Dec 17 2028.
• Broker warrants: 3,986,090 non‑transferable broker warrants issued; each permits purchase of one unit at the offering price ($0.30) until Dec 17 2028.
• Underwriter cash commission: $1,195,826.98 paid to underwriters.
• Insider participation: Directors/officers purchased 60,700 units for $18,210; these units are subject to a hold period expiring Apr 18 2026.
• Regulatory exemptions:
• 37,333,332 units issued under NI 45‑106 Part 5A prospectus exemption (no statutory hold period).
• 29,333,500 units issued under private placement exemption, subject to hold period until Apr 18 2026 per TSX‑V policy.
• Use of proceeds: Advancement of the Plomosas silver project (exploration drilling, resource estimate update, preliminary economic assessment), working capital, and general corporate purposes.
• Future milestones: Planned PEA report in H2 2026; anticipated updated NI 43‑101 mineral resource estimate and bulk‑sampling studies.

Notable Quotes

“This milestone financing comes in an environment where the silver price exceeds $60 per ounce. The company is now financially capable (with more than $28.5 million in its treasury) to carry out an aggressive stepout and exploration drilling campaign at San Marcial area, Plomosas project… Management expects 2026 to become a game‑changing year for the company.” – Marcio Fonseca, CEO

Materiality Assessment: Material – Positive** (significant financing that materially enhances the company’s balance sheet and enables major exploration milestones).