Silver Valley closes $2-million private placement

Executive Summary

• Silver Valley Metals Corp. has closed a previously announced non-brokered private placement, raising $2 million in aggregate gross proceeds following conditional approval from the TSX Venture Exchange.
• The company issued 16,666,667 units at a price of 12 cents per unit, with each unit comprising one common share and one common share purchase warrant.
• Net proceeds will be primarily used to acquire an accretive mineral project of scale and to advance the Mexi-Can lithium-potash project, with remaining funds allocated to general working capital.

Key Details

• Gross Proceeds: $2,000,000
• Net Proceeds: Not explicitly stated, but implied to be less than gross proceeds due to issuance costs.
• Units Issued: 16,666,667 units
• Price Per Unit: $0.12 CAD
• Warrant Terms: Each unit includes one common share purchase warrant. Each warrant allows the holder to acquire one additional common share at an exercise price of $0.25 CAD. The warrants are exercisable for a period of 24 months from the date of issuance.
• Insider Participation: Three insiders subscribed for an aggregate of $498,000. This constitutes a related-party transaction under Multilateral Instrument 61-101, but the company is exempt from formal valuation and minority shareholder approval requirements as the fair market value of insider participation does not exceed 25% of the company's market capitalization.
• Use of Proceeds:
  • Advance strategic objective of acquiring an accretive mineral project of scale.
  • Maintain and selectively advance the Mexi-Can lithium-potash project in a capital-efficient manner with a view toward potential future partnership opportunities.
  • General working capital and corporate purposes.
• Regulatory Status: Financing closed subject to final acceptance by the TSX Venture Exchange (conditional approval received).
• Hold Period: All securities are subject to a statutory hold period of four months and one day.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.