Silver Hammer arranges minimum $2.5M private placement

Executive Summary

• Silver Hammer Mining Corp. announced a non-brokered private placement of units under the Listed Issuer Financing Exemption (LIFE), securing C$1.6 million in lead orders from two strategic investors.
• The offering allows for the issuance of up to 42 million units at 10 cents per unit, targeting maximum gross proceeds of approximately $4.2 million (minimum $2.5 million).
• Proceeds are designated for the exploration of the Silver Strand and Fahey projects in Idaho, and the Eliza and Silverton projects in Nevada, alongside working capital needs.

Key Details

• Transaction Structure: Non-brokered private placement of units pursuant to the Listed Issuer Financing Exemption (Part 5A of National Instrument 45-106).
• Pricing: Units priced at 10 cents per unit.
• Quantity and Proceeds:
  • Minimum: 25 million units for $2.5 million in gross proceeds.
  • Maximum: 42 million units for approximately $4.2 million in gross proceeds.
• Lead Orders: C$1.6 million secured from two strategic silver investors.
• Unit Composition: Each unit consists of one common share and one-half of one share purchase warrant.
• Warrant Terms:
  • Each warrant allows the purchase of one additional share at an exercise price of 15 cents.
  • Exercise period: From 61 days after closing until 36 months from the closing date.
• Finder’s Fees:
  • Cash fees of up to 7.0% of gross proceeds for eligible finders.
  • Non-transferable finders' warrants issued equal to up to 7.0% of the number of units sold.
  • Finder's warrant exercise price: 15 cents per share for 36 months.
• Use of Proceeds: Exploration of Silver Strand and Fahey projects (Idaho); Eliza and Silverton projects (Nevada); working capital; and general corporate purposes.
• Closing Conditions: Subject to corporate and regulatory approvals, including the Canadian Securities Exchange (CSE). Expected to close before February 25, 2026.
• Hold Period: Securities are not subject to a hold period under applicable Canadian securities laws.
• Strategic Context: The company controls seven previously producing silver mines with no royalties. Recent acquisition of the Fahey silver project (Coeur d'Alene district) is highlighted, noting 20+ identified veins. Silverton Phase 1 drilling results anticipated by end of February.

Notable Quotes

• "Silver Hammer is pleased to receive a lead orders totalling $1.6-million from two strategic silver investors to assist in the company's 2026 exploration plan to explore its 100-per-cent-controlled and owned high-grade silver assets in Idaho and Nevada." — Peter A. Ball, President and CEO
• "This offering creates the opportunity for Silver Hammer to be fully financed to explore it entire highly prospective portfolio in 2026 for the next high-grade silver discovery in Nevada." — Peter A. Ball, President and CEO
• "Fahey is perfectly situated between two of the well-known silver mines in North America: the currently operating Galena mine and the historic Sunshine mine... More than 20 veins have been identified within the Fahey property, which is more than the number of veins in either the Bunker Hill mine... or the Sunshine mine." — Peter A. Ball, President and CEO