Blackrock Silver arranges $15-million private placement

Executive Summary

• Blackrock Silver Corp. has arranged a non-brokered private placement of up to 13,636,363 units for gross proceeds of up to C$15 million.
• The offering is expected to be fully subscribed by two cornerstone investors, including one existing large shareholder and a new strategic investor.
• Net proceeds will be utilized to finance exploration, permitting, and predevelopment activities on the Tonopah West project, as well as for general working capital.

Key Details

• Transaction Structure: Non-brokered private placement of up to 13,636,363 units.
• Price: $1.10 per unit.
• Gross Proceeds: Up to C$15 million.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms: Each warrant entitles the holder to acquire one common share at an exercise price of $1.50 per share.
• Warrant Expiry: Two years from the closing date of the offering.
• Hold Period: Four months and one day from the closing of the offering for all securities issued.
• Use of Proceeds: Financing exploration, permitting, and predevelopment activities on the Tonopah West project; general working capital.
• Finder’s Fees: The company may pay finders' fees of up to 6% in cash and finder warrants equal to up to 6% of the units placed. Finder warrants are exercisable for one common share at $1.50 per share for a two-year term.
• Insider Participation: An insider of the company may acquire units under the offering, constituting a related party transaction. The company intends to rely on exemptions from formal valuation and minority shareholder approval requirements under MI 61-101, as the transaction value is not expected to exceed 25% of the company's market capitalization.
• Regulatory Approval: Subject to receipt of all necessary approvals, including the TSX Venture Exchange.

Notable Quotes

• "The $15-million investment from two strategic buyers, including one of our largest shareholders and a new cornerstone investor, demonstrates strong alignment around our vision for Tonopah West. As an emerging American silver developer, the funding strengthens our balance sheet and enables us to advance aggressively on exploration, predevelopment and permitting initiatives." — Andrew Pollard, President and CEO