Prince Silver closes $4.75-million private placement

Executive Summary

• Prince Silver Corp. has closed an upsized non-brokered private placement, raising total gross proceeds of $4.75 million.
• The company issued 6,785,713 units at a price of $0.70 per unit, with net proceeds designated for Phase 2 drilling, maiden resource estimation, metallurgical work, and working capital.
• The financing includes warrants with an exercise price of $1.00 and a two-year term, subject to an acceleration clause if the share price exceeds $1.40 for 10 consecutive days.

Key Details

• Gross Proceeds: $4.75 million.
• Units Issued: 6,785,713 units.
• Price Per Unit: $0.70.
• Unit Composition: Each unit consists of one common share and one-half of one common share purchase warrant.
• Warrant Terms:
  • Each whole warrant entitles the holder to acquire one additional common share.
  • Exercise Price: $1.00 per share.
  • Term: Two years from the date of issuance.
  • Acceleration Clause: The company may accelerate the expiry date to no less than 30 days following notice if the closing price of common shares equals or exceeds $1.40 for 10 consecutive trading days.
• Hold Period: All securities are subject to a statutory hold period of four months and one day.
• Use of Proceeds:
  • Advance the second phase of reverse circulation exploration and infill drilling at the Prince silver project.
  • Complete a maiden mineral resource estimate.
  • Conduct continuing metallurgical work.
  • General working capital purposes.
• Company Treasury: Post-financing treasury stands at over $8 million.
• Insider Participation: The CEO noted strong participation from founders and insiders, reflecting confidence in the Prince silver project.

Notable Quotes

• "This upsized financing places Prince in a very strong position. With a treasury of over $8-million, we are now fully funded for a second phase of reverse circulation exploration and infill drilling this year while also advancing toward a maiden mineral resource estimate and ongoing metallurgical work. The strong participation from our founders and insiders reflects the confidence in the scale and potential of the Prince silver project." — Derek Iwanaka, Chief Executive Officer and Director