June 28, 2023
Silver X Mining Announces Closing of Second Tranche of Non-Brokered Private Placement
Vancouver, B.C., June 28, 2023 – SILVER X MINING CORP. (TSX-V: AGX) (OTC QB: AGXPF) (F: AGX) (“Silver X” or the “Company”) announces that it has closed the second of its previously announced non-brokered private placement offering (the “Offering”) with the placement of 3,006,700 units (the “Units”) at a price of $0.30 per Unit for gross proceeds of $902,010. On June 5, 2023, the Company announced the closing of the first tranche of the Offering with proceeds of $1,263,015. In total, the Company has placed 7,216,750 units for aggregate gross proceeds of $2,165,025.
Each Unit consisted of one common share of the Company (a “Common Share”) and one (1) of one Common Share purchase warrant (a “Warrant”). Each Warrant will entitle the holder to purchase one Common Share at a price of $0.45 for a period expiring two years following the closing date of the Offering (the “Closing Date”).
The Company intends to use the net proceeds from the Offering for capital expenditures and exploration relatedto the Nueva Recuperada Silver District in Peru (the “Project”) and potential acquisitions of assets.
CEO, Jose Garcia, and Vice President, Corporate Development, Sebastian Wahl, (the “Insiders”) have each participated for a total of approximately $133,000 worth of Units in the second tranche of the Offering. The participation by the Insiders of the Company in the Offering constitutes a related party transactions within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). Such participation is exempt from the formal valuation and minority shareholder approval requirements in sections 5.5(a) and 5.7(1)(a), as neither the fair market value of the securities issued, nor the fair market value of the consideration for the securities issued exceeds 25% of the Company’s market capitalization as calculated in accordance with MI 61-101. A material change report in connection with the Offering will be filed less than 21 days before the closing of the Offering. This shorter period was reasonable and necessary in the circumstances as the Company wished to complete the Offering in a timely manner.
All securities issued and issuable in connection with the second tranche closing of the Offering are subject to a statutory hold period expiring on October 29, 2023. Closing of the Offering is subject to receipt of all necessary regulatory approvals including final acceptance of the TSX Venture Exchange.
Under the second tranche of the Private Placement, the Company has paid fees to eligible finders consisting of: (i) $10,902.60 in cash and (ii) 21,780 finder warrants (the “Finder Warrants”) exercisable into one Common Share at a price of $0.45, and (iii) 14,562 Finder Warrants exercisable into one Common Share at a price of $0.30. Finder Warrants are exercisable until June 28, 2025.
The Company expects to close the final tranche of the Offering in early July and has identified additional orders.
This news release does not constitute an offer to sell or solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Silver X
Silver X is a silver producer building a district-scale precious metals platform in central Peru. Its flagship Nueva Recuperada Silver District includes current production, development opportunities, and significant exploration potential. With a clear path to increased throughput and a pipeline of high-grade targets, Silver X is positioned for continued growth and long-term value creation. For more information visit our website at www.silverxmining.com.
About OTC Markets Group Inc.
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On Behalf of the Board
José M. García
CEO and Director
For further information, please contact:
Investor Relations
Cautionary Statement Regarding “Forward Looking” Information
This press release contains forward-looking information within the meaning of applicable Canadian securities legislation (“forward-looking information”). Forward-looking information is generally identified by words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes”, or similar expressions, including statements that certain events or results “may”, “could”, “would” or “will” occur. All statements other than historical facts constitute forward-looking information, including, without limitation, statements regarding exploration plans, operating results, expected project performance, the potential for resource expansion at Tangana, the economic viability of the Tangana Mining Unit, and the Company’s expected financial performance.
Forward-looking information is based on a number of assumptions, including that general economic and business conditions will not materially worsen; commodity demand and prices will remain stable or improve; required permits and approvals will be obtained on a timely basis; operations will not be materially disrupted by accidents, labour issues or equipment failures; financing will be available; equipment and supplies will be accessible as needed; resource estimates and underlying assumptions (including size, grade and recovery) are reasonable; and the Company will be able to attract and retain qualified personnel and execute its strategic objectives.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information, including but not limited to those risks described in the Company’s annual and interim MD&As and in its public documents filed on www.sedarplus.ca from time to time. Forward- looking statements are based on the opinions and estimates of management as of the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward- looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
