Silver X closes $69-million debenture offering

Executive Summary

• Silver X Mining Corp. closed a brokered private placement of secured convertible debentures for aggregate gross proceeds of C$69 million, following the full exercise of a 15% overallotment option.
• The capital will fund development capital expenditures, working capital, and general corporate purposes to advance the Nueva Recuperada project and support selective acquisition opportunities.
• The debentures carry a 10% fixed interest rate, a $1.62 conversion price, and a 5-year maturity, with collateral secured by the company's Peruvian assets and subsidiary guarantees.

Key Details

• Gross Proceeds: C$69 million (initially $60 million, increased by $9 million via full exercise of 15% overallotment option)
• Instrument & Quantity: 69,000 secured convertible debentures issued at $1,000 per debenture
• Agent/Bookrunner: Ventum Financial Corp. acting on a best-effort agency basis
• Interest Terms: 10.0% fixed rate per annum, payable semi-annually; company may elect to pay interest in cash or common shares for the first four payment dates, with mandatory cash payments thereafter
• Conversion Terms: Convertible at holder's election into common shares at $1.62 per share, subject to customary anti-dilution adjustments, exercisable until the earlier of maturity or full repayment of principal and accrued interest
• Maturity: 5 years from issuance date
• Security & Collateral: Secured by a substantial portion of company assets (including subsidiaries), held in two Peruvian trust structures (asset trust and administration trust), plus a general security agreement in Canada and subsidiary guarantees
• Use of Proceeds: Development capital expenditures, working capital, and general corporate purposes
• Agent Compensation: 6% cash commission on total gross proceeds paid to Ventum Financial Corp.
• Regulatory & Hold Period: Subject to final TSX Venture Exchange approval; securities subject to a 4-month-and-1-day statutory hold period under Canadian securities laws
• Project Context: Funds will support the Nueva Recuperada project in Peru, a 20,795-hectare district-scale land package targeting ~6 million silver equivalent ounces across two mining units

Notable Quotes

• "Closing this private placement is an important step toward our ambition to become South America's next premier silver company... This capital enables us to continue advancing the Nueva Recuperada project across production expansion, development and exploration, where we expect to deliver meaningful results in the months ahead. In parallel, we will evaluate selective acquisition opportunities that support our long-term growth strategy." – Jose Garcia, Chief Executive Officer