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Blackrock Silver Closes $5.75 Million Bought Deal Financing; Over-Allotment Option Exercised in Full

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Blackrock Silver Closes $5.75 Million Bought Deal Financing; Over-Allotment Option Exercised in Full






Blackrock Silver Corp. (TSX-V: BRC) is pleased to announce that it has completed its previously announced and upsized “bought deal” public offering of 28,750,000 units of the Company at a price of $0.20 per Unit for aggregate gross proceeds of $5,750,000. The completed Offering includes the exercise in full of the Underwriters’ (as defined herein) over-allotment option for the sale of 3,750,000 Units for proceeds of $750,000.


Each Unit consists of one common share of the Company and one half of one Common Share purchase warrant. Each Warrant entitles the holder thereof to purchase one Common Share of the Company at a price of $0.30 at any time on or before January 26, 2027.


The Offering was conducted by Red Cloud Securities Inc., acting as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters which included Leede Jones Gable Inc., PI Financial Corp. and Research Capital Corporation. In connection with the Offering, the Company paid to the Underwriters a cash commission of $336,000 and issued to the Underwriters 1,680,000 Common Share purchase warrants. Each Compensation Warrant entitles the holder thereof to acquire one Common Share at a price of $0.20 per Common Share at any time on or before January 26, 2027.


The Offering was completed pursuant to a prospectus supplement of the Company dated January 19, 2024 to the short form base shelf prospectus of the Company dated August 4, 2023 in each of the provinces and territories of Canada (except Québec), and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“) and applicable state securities laws and other jurisdictions. The Offering remains subject to the final approval of the TSX Venture Exchange.


The net proceeds raised under the Offering will be used by the Company to complete the final option payment on the Company’s flagship Tonopah West project in Nevada, after which the Company will own 100% of Tonopah West, for expansion drilling and to continue with metallurgical characterization, engineering evaluation, and hydrological assessment at Tonopah West, as well as for general working capital and corporate purposes.


One insider of the Company purchased or acquired direction and control over a total of 75,000 Units under the Offering. The sale to such person constitutes a “related party transaction” within the meaning of TSX-V Policy 5.9 and Multilateral Instrument 61-101 –Protection of Minority Security Holders in Special Transactions adopted in the Policy. The Company has relied on exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of the related party participation in the offering as neither the fair market value (as determined under MI 61-101) of the subject matter of, nor the fair market value of the consideration for, the transaction, insofar as it involved the related party, exceeded 25% of the Company’s market capitalization (as determined under MI 61-101).


The securities offered pursuant to the Offering have not been, nor will they be, registered under the U.S. Securities Act or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from the registration requirements. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.


About Blackrock Silver Corp.


Backed by gold and silver ounces in the ground, Blackrock is a junior precious metal focused exploration company driven to add shareholder value via the drill bit. With 6.12 million tonnes grading 508.5 g/t silver equivalent[1] at its Tonopah West project, and a new bonanza-grade gold discovery at its Silver Cloud project, the Company has a proven track record of exploration success. In addition to its gold and silver project portfolio, the Company is credited with a lithium discovery, the Tonopah North project, which is under option to a lithium exploration group. Anchored by a seasoned Board of Directors, the Company is focused on its 100% controlled Nevada portfolio of properties consisting of low-sulphidation, epithermal gold and silver mineralization located along the established Northern Nevada Rift in north-central Nevada and the Walker Lane trend in western Nevada.


Posted January 29, 2024

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