Silver One closes $31.07M first tranche of financing

Executive Summary

• Silver One Resources Inc. has closed the first tranche of its non-brokered private placement, raising $31.08 million in gross proceeds.
• The transaction involves the issuance of 53,583,000 units at $0.58 per unit, with Eric Sprott subscribing approximately $10 million, increasing his stake to ~16%.
• Proceeds are designated for drilling, exploration, metallurgical studies, and a prefeasibility study at the Candelaria project, as well as general working capital.

Key Details

• Transaction Structure: Non-brokered private placement; first tranche closed.
• Gross Proceeds: $31,078,140.
• Units Issued: 53,583,000 units.
• Price Per Unit: $0.58.
• Warrant Terms: Each unit includes one common share and one-half of one common share purchase warrant. Each whole warrant allows the purchase of one additional common share at $0.80 per share for a period of three years from the date of issue.
• Finder’s Fees: $1,779,464 paid in cash; no finder warrants issued.
• Hold Period: No hold period in Canada for Canadian subscribers pursuant to National Instrument 45-106 and Coordinated Blanket Order 45-935.
• Use of Proceeds:
  1. Drilling program at the Candelaria project.
  2. Exploration and geophysics work at mineral properties.
  3. Metallurgical and environmental work at the Candelaria project.
  4. Prefeasibility study on the Candelaria project.
  5. Annual mineral claim payments to the Bureau of Land Management.
  6. Exploration drilling at mineral properties.
  7. General working capital.
• Eric Sprott Investment:
  • Acquired 17,240,000 units for $9,999,200.
  • Pre-offering ownership: ~13.0% (37,873,016 shares).
  • Post-offering ownership: ~16.0% on a non-diluted basis (55,113,016 shares and 8.62 million warrants) and ~18.0% on a partially diluted basis.
• Future Tranche: The company expects to close the final tranche of $922,200 shortly.

Notable Quotes

• "Management is very pleased with the enthusiastic response to the offering. Eric Sprott subscribed for approximately $10-million of the $32-million placement and now holds approximately 16.0 per cent of the issued and outstanding shares. We also welcome other new institutions into the shareholder register. This is a strong show of support for our company and its silver-focused projects." — Greg Crowe, CEO
• "The company plans to move aggressively with more exploration drilling at all our projects, especially regarding the potential to increase the in-ground mineralization marginal to the two open pits at Candelaria. We will be continuing our heap pad drilling, sampling and metallurgical studies in preparation for our upcoming prefeasibility study." — Greg Crowe, CEO