Pacifica closes $23.01-million private placement

Executive Summary

• Pacifica Silver Corp. has closed an upsized brokered private placement offering of 15.87 million common shares at $1.45 per share, raising aggregate gross proceeds of $23,011,500.
• The offering included the full exercise of the agents' over-allotment option and received support from new institutional investors and existing strategic shareholders, including Vizsla Silver, First Majestic, Silvercorp Metals, and Eric Sprott.
• Net proceeds will be used to advance exploration and drilling activities at the Claudia silver-gold project in Durango, Mexico, and for general corporate purposes.

Key Details

• Shares Issued: 15,870,000 common shares.
• Price Per Share: $1.45.
• Gross Proceeds: $23,011,500 (includes exercise of agents' option in full).
• Net Proceeds Use: Advancing exploration and drilling at the Claudia project (Durango, Mexico), working capital, and general corporate purposes.
• Strategic Investors: Continued commitment from Vizsla Silver Corp., First Majestic Silver Corp., Silvercorp Metals Inc., and Eric Sprott.
• Insider Participation: Four insiders subscribed for 180,000 units for gross proceeds of $261,000. This is considered a related-party transaction under Multilateral Instrument 61-101, with exemptions from formal valuation and minority shareholder approval sought.
• Agent Fees:
  • Cash fee paid to agents: $1,260,690.
  • Compensation warrants issued: 414,031 warrants.
  • Warrant Terms: Each exercisable into one common share at $1.45 per share for a term of two years, expiring on Jan. 23, 2028.
• Lead Agent: Raymond James Ltd. (sole bookrunner).
• Syndicate Agents: Research Capital Corp. and others.
• Regulatory Basis: Listed issuer financing exemption under National Instrument 45-106 (Canada, excluding Quebec) and exemptions from U.S. Securities Act of 1933 registration requirements.
• Hold Period: No statutory hold period applies under Canadian securities laws.

Notable Quotes

• "We are grateful to close our upsized brokered offering with robust participation from sophisticated new institutional investors possessing extensive expertise in the mining and silver sectors, as well as the support of our existing strategic shareholders," stated Todd Anthony, chief executive officer of Pacifica Silver. "Their collective endorsement reflects strong conviction in the untapped potential of our flagship Claudia silver-gold project in Durango, Mexico, and the proceeds from this financing will enable us to accelerate exploration efforts, systematically test high-priority targets and unlock the project's high-grade potential through year-round, multirig drilling operations."