March 3, 2023 Blackrock Silver Corp. (TSXV: BRC) has entered into an agreement with PI Financial Corp. and Red Cloud Securities Inc. as co-lead agents and joint bookrunners for a private placement of up to 21,400,000 units at a price of $0.37 per unit, to raise up to C$7,918,000. The minimum offering will be 10,900,000 units for aggregate gross proceeds of C$4,033,000. Each unit will include one common share of the company and half of one common share purchase warrant, with each whole warrant allowing the holder to acquire an additional common share for $0.50 per share within three years of the closing date of the offering.
Use of Proceeds
The gross proceeds from the offering will be used to fund the US$700,000 option payment due on April 2, 2023, for Blackrock’s Tonopah West project and to fund the US$500,000 lease payment due on October 27, 2023, for the Silver Cloud project. The remaining funds will be used for exploration of the company’s silver and gold projects in Nevada, as well as for working capital and general corporate purposes.
Closing of the Offering
All units offered in the private placement will be offered to purchasers pursuant to the listed issuer financing exemption under Part 5A of National Instrument 45-106, and will not be subject to resale restrictions in Canada under applicable Canadian securities laws. The offering is expected to close on or about March 14, 2023, subject to certain conditions including completion of the minimum offering and receipt of all necessary regulatory and other approvals, including approval from the TSX Venture Exchange.
Compensation and Disclosure
The company has agreed to pay the agents a cash commission equal to 6.0% of the gross proceeds from the offering and to issue compensation warrants equal to 6.0% of the aggregate number of units issued under the offering. The compensation warrants will be exercisable into common shares at a price per share equal to the offering price for a period of three years from the closing date. A form 45-106F19 offering document has been filed with the securities commissions or similar regulatory authorities in each of the provinces of Canada, and can be accessed under the company’s profile at www.sedar.com and at www.blackrocksilver.com.