Capitan Silver closes $23-million private placement

Executive Summary

• Capitan Silver Corp. has closed a bought deal private placement raising C$23.0 million in gross proceeds.
• The financing includes the full exercise of the underwriters' over-allotment option, resulting in the issuance of 11,333,250 common shares at $2.03 per share.
• Net proceeds are designated for exploration at the Cruz de Plata gold-silver project, working capital, and general corporate purposes.

Key Details

• Transaction Structure: Bought deal private placement.
• Gross Proceeds: C$23,006,497.50.
• Share Price: $2.03 per common share.
• Shares Issued: 11,333,250 common shares (including full exercise of underwriters' option).
• Underwriters: Stifel Canada (sole bookrunner and lead underwriter), TD Securities Inc., BMO Capital Markets, and Canaccord Genuity Corp.
• Underwriting Commission: Approximately $1,372,473 paid in aggregate cash commission.
• Use of Proceeds: Financing exploration activities at the Cruz de Plata gold-silver project, working capital, and general corporate purposes.
• Regulatory Exemptions: Issued pursuant to the Listed Issuer Financing Exemption (LIFE) under National Instrument 45-106; not subject to statutory hold period for non-insiders.
• Hold Period: Shares issued to insiders are subject to a hold period under TSX Venture Exchange policies, expiring on April 18, 2026.
• Related Party Subscriptions:
  • Robert Scott (Insider): 10,000 shares.
  • Corporation owned by Graham Scott (Insider): 50,000 shares.
  • Michael Gentile (Insider): 100,000 shares.
  • Jupiter Gold & Silver Fund (Managed by Jupiter Investment Management Ltd., Insider): 1,800,000 shares.
• Regulatory Status: Subject to final acceptance of the TSX Venture Exchange. No formal valuation or minority shareholder approval required under MI 61-101 as the transaction value did not exceed 25% of market capitalization.