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VANCOUVER, BC, June 18, 2020 /CNW/ - GR Silver Mining
Ltd. (TSXV: GRSL) (FRANKFURT: GPE) (OTCQB: GRSLF) ("GR
Silver Mining" or the "Company") – is pleased to announce
that it has completed its previously announced bought deal private
placement (the "Offering") of an aggregate of 33,900,000
units of the Company (the "Units") at a price of
$0.27 per Unit (the "Issue
Price") for gross proceeds of $9,153,000, which included the exercise of the
underwriters' option in full. Each Unit consists of one common
share in the capital of the Company and one-half of one common
share purchase warrant (each whole warrant, a "Warrant").
Each Warrant is exercisable to acquire one common share of the
Company at an exercise price of $0.40
per share for a period of 12 months from the closing date of the
Offering.
The Offering was led by Beacon Securities Limited as lead
underwriter and sole bookrunner on behalf of a syndicate of
underwriters including Raymond James Ltd., Canaccord Genuity Corp.,
and Pollitt & Co. Inc. (collectively, the
"Underwriters").
The Company intends to use the net proceeds of the Offering to
fund resource expansion and drilling at the Plomosas and San
Marcial projects in Sinaloa,
Mexico, and for working capital and general corporate
purposes.
The Offering constituted a related party transaction within the
meaning of Multilateral Instrument 61-101 ("MI 61-101") as
First Majestic Silver Corp. (TSX: FR, NYSE: AG), an existing major
shareholder of the Company, subscribed for an aggregate of
4,000,000 Units. The Company is relying on the exemptions from the
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, as
the fair market value of the participation in the Offering by the
insider does not exceed 25% of the market capitalization of the
Company, as determined in accordance with MI 61-101.
In connection with the Offering, the Underwriters received a
cash commission totaling $636,660 and
an aggregate of 2,358,000 non-transferable broker warrants (the
"Broker Warrants"). Each Broker Warrant is exercisable into
one common share of the Company at the Issue Price for a period of
12 months from the closing date of the Offering.
All securities issued under and in connection with the Offering
are subject to a hold period in Canada expiring October
19, 2020.
GR Silver Mining President and CEO, Marcio Fonseca, commented: "With the closing
of this oversubscribed bought deal financing, GR Silver Mining now
has a solid cash position on its balance sheet, placing the Company
in a strong position to continue drilling activities in the
Plomosas and San Marcial Project. The Company now intends to bring
additional drill rigs to the sites to continue drilling not only on
the 6 areas with recent and historical drill holes but also in the
multiple targets with evidence of epithermal veins inside both
projects. The Company has been operating safely in the last 3
months carrying out surface and underground exploration activities
at both projects, in accordance with Mexican authorities
guidelines, with no impact of the COVID-19 at its operations in
Mexico".
The securities offered have not been registered under the
U.S. Securities Act of 1933, as amended, and may not be offered or
sold in the United States absent
registration or an applicable exemption from the registration
requirements. This press 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 State in which such offer,
solicitation or sale would be unlawful.
About GR Silver Mining Ltd.
GR Silver Mining Ltd. is a Mexico-focused company engaged in
cost-effective silver-gold resource expansion on its key assets
which lie on the eastern edge of the Rosario Mining District,
Sinaloa, Mexico.
PLOMOSAS SILVER PROJECT
GR Silver Mining owns 100% of the Plomosas Silver Project
located near the historic mining village of La Rastra, within the Rosario Mining District.
The Project is a past-producing asset where only one mine, the
Plomosas silver-gold-lead-zinc underground mine, operated from 1986
to 2001. The Project has an 8,515-hectare property position and is
strategically located within 5 km of the San Marcial Silver Project
in the southeast of Sinaloa State, Mexico. The Plomosas Project comprises six
areas with an average of 100 surface and underground drill holes in
each area, geophysical and geochemical data covering most of the
concession, and the delineation of 16 exploration/drilling
targets.
The 100% owned assets include all facilities and infrastructure
including: access roads, surface rights agreement, water use
permit, 8,000 m of underground
workings, water access, 60 km - 33 KV power line, offices, shops,
120-person camp, infirmary, warehouses and assay lab representing
approximately US$30 million of
previous capital investments. The previous owners invested
approximately US$18 million in
exploration.
The silver and gold mineralization on this Project display the
alteration, textures, mineralogy and deposit geometry
characteristics of a low sulphidation epithermal silver-gold-base
metal vein/breccia mineralized system. Previous exploration was
focused on Pb-Zn-Ag-Au polymetallic shallow mineralization, hosted
in NW-SE structures in the vicinity of the Plomosas mine. The E-W
portion of the mineralization and extensions for the main N-S
Plomosas fault remains under-explored. The Plomosas Silver Project
has more than 500 recent and historical drill holes in six areas –
Plomosas Mine, San Juan,
La Colorada, Yecora, San
Francisco and El Saltito. These drill holes represent an
extensive database allowing the Company to advance towards resource
estimation and potential project development in the near
future.
SAN MARCIAL PROJECT
San Marcial is a near-surface, high-grade silver-lead-zinc open
pit-amenable project. GR Silver Mining is currently drilling at the
San Marcial Project, which contains 36 Moz AgEq (Indicated) + 11
Moz AgEq (Inferred), exploring recently defined new high-grade gold
and silver targets along the project's 6 km mineralized trend. GR
Silver Mining is the first company to conduct exploration at San
Marcial in over 10 years. The NI 43-101 resource estimate (San
Marcial Project – Resource Estimation and Technical Report) was
completed by WSP Canada Inc. on March 18,
2019 and amended on June 10,
2020.
Plomosas and San Marcial collectively represent a geological
setting resembling the multimillion-ounce San Dimas Mining District
which has historically produced more than 600 Moz silver and 11 Moz
gold over a period of more than 100 years.
OTHER PROJECTS
GR Silver Mining's other projects are situated in areas
attractive for future discoveries and development in the same
vicinity of Plomosas and San Marcial in the Rosario Mining
District.
Mr. Marcio Fonseca
P. Geo, President & CEO
GR Silver Mining
Ltd.
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Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accept responsibility for the adequacy or
accuracy of this press release.
Disclaimer for Forward-Looking
Information
This press release contains
forward-looking statements and information that are based on the
beliefs of management and reflect the Company's current
expectations. Forward-looking statements and forward-looking
information include, but are not limited to, statements with
respect to the use of proceeds of the Offering and the potential
for resource expansion. Except for statements of historical fact
relating to the Company, certain information contained herein
constitutes forward-looking statements. When used in this press
release, the words "estimate", "project", "belief", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" and the
negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and
information. Such statements and information reflect the current
view of the Company. Risks and uncertainties may cause actual
results to differ materially from those contemplated in those
forward-looking statements and information. By their nature,
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause our actual results,
performance or achievements, or other future events, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking
statements. The forward-looking statements and information
contained in this press release are made as of the date hereof, and
the Company is not obligated to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise, except as required by
applicable securities laws. Because of the risks, uncertainties and
assumptions contained herein, investors should not place undue
reliance on forward-looking information. The foregoing statements
expressly qualify any forward-looking statements and information
contained herein.
SOURCE GR Silver Mining Ltd.