Silver Valley arranges $2-million private placement

Executive Summary

• Silver Valley Metals Corp. has filed for conditional approval for a non-brokered private placement to raise $2 million in gross proceeds.
• The financing involves the issuance of 16,666,667 units at $0.12 per unit, with insiders subscribing for $504,000 of the total amount.
• Net proceeds will be used to advance the Mexi-Can lithium-potash project, strengthen technical capabilities, broaden the shareholder base, and for general working capital.

Key Details

• Transaction Structure: Non-brokered private placement seeking conditional approval from the TSX Venture Exchange.
• Units Issued: 16,666,667 units.
• Price: $0.12 per unit.
• Gross Proceeds: $2,000,000.
• Unit Composition: Each unit consists of one common share and one common share purchase warrant.
• Warrant Terms: Each warrant allows the purchase of one common share at an exercise price of $0.25 for 24 months from the date of issue.
• Insider Subscription: Four insiders are subscribing for $504,000, constituting a related party transaction under Multilateral Instrument 61-101.
• Regulatory Exemption: The company is exempt from formal valuation and minority shareholder approval requirements of MI 61-101 because the fair market value of the transaction does not exceed 25% of the company's market capitalization.
• Hold Period: All securities are subject to a statutory hold period of four months and one day from the date of issue.
• Use of Proceeds:
  • Evaluation and advancement of advanced-stage, high-quality mineral opportunities (focus on Tier 1 jurisdictional/geological assets).
  • Strengthening technical and advisory capabilities (assembly of technical, geological, and corporate teams).
  • Broadening the shareholder base (adding strategic, long-term investors).
  • Continued advancement of the Mexi-Can lithium-potash project (maintaining good standing, technical evaluation, advancement activities).
  • General working capital (corporate overhead, business development, strategic opportunities).
• Strategic Asset: The company retains its equity position in Silver Dollar Resources Inc., providing exposure to the Ranger-Page silver-zinc-lead project in Idaho.
• Project Update (Mexi-Can): The company owns 100% of the Mexi-Can lithium-potash project (4,056 hectares). NI 43-101 inferred resource contains 12.3 million tonnes of sulphate of potash (SOP) and 243,000 tonnes of lithium carbonate equivalent (LCE) defined from surface to an average depth of five meters.