Silicon Metals closes first tranche of offerings

Executive Summary

• Silicon Metals Corp. has closed the initial tranche of its non-brokered private placement offerings, raising aggregate gross proceeds of $145,000.
• The company plans to close the final tranche of the offering in the following week.
• The offering consisted of both Non-Flow-Through (NFT) and Flow-Through (FT) units, with proceeds allocated to general working capital and eligible exploration expenditures in British Columbia and Ontario.

Key Details

• Total Gross Proceeds: $145,000 from the initial tranche.
• Non-Flow-Through (NFT) Units:
  • Quantity: 1.5 million units.
  • Price: $0.05 per unit.
  • Gross Proceeds: $75,000.
  • Composition: Each unit consists of one common share and one-half of a common share purchase warrant.
  • Warrant Terms: Each whole warrant allows purchase of one common share at an exercise price of $0.06 for 24 months.
  • Accelerator Provision: If the CSE closing price is $0.15 or higher for 10 consecutive trading days, the company may accelerate warrant expiry to 30 days from the trigger.
• Flow-Through (FT) Units:
  • Quantity: 1.0 million units.
  • Price: $0.07 per unit.
  • Gross Proceeds: $70,000.
  • Composition: Each unit consists of one common flow-through share and one-half of a common share purchase warrant.
  • Warrant Terms: Each whole warrant allows purchase of one common share at an exercise price of $0.10 for 24 months.
  • Accelerator Provision: Same terms as NFT warrants (acceleration if CSE closes at $0.15+ for 10 consecutive days).
• Use of Proceeds:
  • NFT proceeds: General working capital.
  • FT proceeds: Eligible exploration expenditures on projects in British Columbia and Ontario.
• Finder’s Fees:
  • Cash fees: $1,400 paid.
  • Warrants issued: 20,000 finders' warrants.
  • Finder's Warrant Terms: Exercisable into one common share at $0.07 for 24 months, including the same accelerator provision.
• Regulatory Holds: All securities subject to a statutory hold period of four months and one day post-issuance per National Instrument 45-102.
• Future Plans: The company intends to close the final tranche of the offering next week.