Trading Symbol: "IPT: TSX.V"
/NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR
FOR DISSEMINATION IN THE UNITED
STATES/
VANCOUVER, Jan. 18, 2019 /CNW/ - IMPACT Silver Corp.
("IMPACT" or the "Company") is pleased to announce that it has
completed the second and final tranche of the non-brokered private
placement (the "Private Placement") announced on November 6, 2018. Despite challenging junior
mining markets, the Company has oversubscribed the financing
originally announced for $1.5 million
with a total raise of $1.74 million.
In the second tranche of the Private Placement, a total of
$1.19 million was raised through the
issuance of 4,421,753 units (each a "Unit") at a price of
$0.27 per Unit. Each Unit consists of
one common share (a "Share") and one warrant (a "Warrant"). Each
Warrant entitles the holder to acquire one Share at a price of
$0.35 and expires in 24 months.
Frederick Davidson, CEO and
President of IMPACT comments "Following a series of successful 2018
exploration programs at San Ramon, Guadalupe, and Santa Teresa Gold, the market has clearly
indicated interest in the combination of cashflow from production
and exploration potential that IMPACT offers. First thing, we aim
to explore the targets at Santa Teresa which we recently sampled
6.5g/t gold over a true width of 1.66 meters along a strike length
of 50 meters. (see News Release dated September 25, 2018) and nearby Carlos Pecheco had drilling results of up to
19.6g/t gold over 2.9 meter true width in 2008 (News Release
dated December 04, 2008).
Concurrent to exploration are optimization at the Guadalupe
operation to ensure operation cashflow remains buoyant at
current silver prices."
Officers and directors of IMPACT subscribed for a total of
565,500 units (approximately 11% of the second tranche financing).
The Company intends to use the proceeds of the Private
Placement to explore the Zacualpan land package for additional high
potential precious metals as well as gold-copper targets, to
improve efficiencies at the Guadalupe production mill, and for
general working capital purposes.
In consideration for their services, the Company has paid a cash
commission equal to up to 6% of the gross subscription proceeds
raised from certain subscribers in the Private Placement.
The Private Placement is subject to the receipt of final
approval from the TSX Venture Exchange.
The Shares and Warrants issued under the Private Placement today
are subject to a standard hold period of four months and one day,
expiring on May 19, 2019, all in
accordance with applicable securities laws.
About IMPACT Silver:
IMPACT Silver Corp. is a successful silver explorer-producer
with two processing plants on adjacent districts within its 100%
owned mineral concessions covering 357km2 in central Mexico with excellent infrastructure and labor
force. Over the past twelve years over 8.1 Moz of Silver has been
produced, generating revenues of $168
million, with no long-term debt. In the historic
Royal Mines of Zacualpan Silver
District three underground silver mines feed the central 535 TPD
Guadalupe processing plant. To the south, in the Mamatla District the Capire processing plant
is currently rated at 200 tpd, but is expandable. It is adjacent to
an open pit silver mine with a National Instrument 43-101 ("NI
43-101") compliant resource of over 4.5 Moz Silver, 48 million lbs Zinc and 21 million
lbs Lead (see IMPACT news release dated January 18, 2016 for details) that is awaiting
higher silver prices to be restarted. Since acquiring the project,
IMPACT has compiled an exhaustive database with over 5,000 old mine
workings, assayed over 50,000 rock samples and over 70,000 drill
core samples, analysed over 85,000 soil samples, and put six mines
into production. Additional information about IMPACT and its
operations can be found on the Company website
at www.IMPACTSilver.com.
Qualified Person and NI 43-101 Disclosure
George Gorzynski,
P.Eng.,. is a "qualified person" within the meaning of NI
43-101 and has reviewed and approved the technical information
disclosure contained in this press release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking"
statements and information relating to IMPACT that is based on the
beliefs of IMPACT management, as well as assumptions made by and
information currently available to IMPACT management.
Forward-looking information is often, but not always, identified by
the use of words such as "seek", "anticipate", "plan", "continue",
"planned", "expect", "project", "predict", "potential",
"targeting", "intends", "believe", "potential", and similar
expressions, or describes a "goal", or variation of such words and
phrases or state that certain actions, events or results "may",
"should", "could", "would", "might" or "will" be taken, occur or be
achieved. Such statements include, but are not limited to,
statements with respect to the expected use of proceeds of the
Private Placement.
Such forward-looking information involves known and unknown
risks and assumptions, including with respect to, without
limitations, exploration and development risks, expenditure and
financing requirements, title matters, operating hazards, metal
prices, political and economic factors, competitive factors,
general economic conditions, relationships with vendors and
strategic partners, governmental regulation and supervision,
seasonality, technological change, industry practices, and one-time
events. Should any one or more risks or uncertainties materialize
or change, or should any underlying assumptions prove incorrect,
actual results and forward-looking statements may vary materially
from those described herein. IMPACT does not assume the obligation
to update any forward-looking statement.
The Company's decision to place a mine into production, expand a
mine, make other production related decisions or otherwise carry
out mining and processing operations, is largely based on internal
non-public Company data and reports based on exploration,
development and mining work by the Company's geologists and
engineers. The results of this work are evident in the discovery
and building of multiple mines for the Company and in the track
record of mineral production and financial returns of the Company
since 2006. Under NI 43-101 the Company is required to disclose
that it has not based its production decisions on NI 43-101
compliant mineral resource or reserve estimates, preliminary
economic assessments or feasibility studies, and historically such
projects have increased uncertainty and risk of failure.
SOURCE IMPACT Silver Corp.
