SILICON METALS CORP is pleased to announce that it has the intention to complete a non-flow-through private placement of units for gross proceeds of up to $100,000, as well as a flow-through private placement of units for gross proceeds of up to $100,000.
Morgan Good, Chief Executive Officer and Director, commented: “This small and strategic placement was designed for a very specific reason, as the previous placement closed by Silicon was maxed out due to CSE policies, a short list of key investors were unable to participate. This minimal dilution is seen as negligible by our team, whilst very worthwhile as we garnered further important depth to our equity ownership base adding these most recent supporters.”
The offering
Pursuant to the Non-Flow-Through Offering, the Company intends to issue up to 2,000,000 non-flow-through units at a price per unit of $0.05. The units will consist of one common share of the Company and one half of a non-flow-through common share purchase warrant, with each whole non-flow-through warrant entitling the holder thereof to purchase a non-flow-through common share at an exercise price of $0.06 for a period of 24 months. The terms of the non-flow-through warrants will also include an accelerator provision whereby, if the price of the common shares on the CSE closes at $0.15 or higher for a period of ten (10) consecutive trading days, the Company may accelerate the expiry date of the warrants to thirty (30) days from the acceleration trigger.
Pursuant to the Flow-Through Offering, the Company also intends to issue up to approximately 1,428,571 flow-through units at a price per unit of $0.07. The flow-through units will consist of one flow-through common share of the Company and one half of a non-flow-through common share purchase warrant, with each whole non-flow-through warrant entitling the holder thereof to purchase a non-flow-through common share at an exercise price of $0.10 for a period of 24 months. The terms of the non-flow-through warrants will also include an accelerator provision whereby, if the price of the common shares on the CSE closes at $0.15 or higher for a period of ten (10) consecutive trading days, the Company may accelerate the expiry date of the warrants to thirty (30) days from the acceleration trigger.
The Company intends to use the aggregate proceeds of the Non-Flow-Through Offering for general working capital purposes and proceeds of the Flow-Through Offering to incur eligible exploration expenditures on its projects in British Columbia and Ontario. Finders’ fees may be payable in connection with the Offerings in accordance with the policies of the CSE.
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