Americas Silver Corporation Announces $20 Million Financing

Silver Investing

Americas Silver (TSX:USA) has announced a private placement with Eric Sprott together with other strategic shareholders led by GMP Securities L.P. and Medalist Capital. Americas Silver intends to issue approximately 67 million units at a price of $0.30 a unit for gross proceeds of up to $20 million. Darren Blasutti, president and CEO, said: We …

Americas Silver (TSX:USA) has announced a private placement with Eric Sprott together with other strategic shareholders led by GMP Securities L.P. and Medalist Capital. Americas Silver intends to issue approximately 67 million units at a price of $0.30 a unit for gross proceeds of up to $20 million.
Darren Blasutti, president and CEO, said:

We are very pleased to welcome Eric Sprott and new cornerstone institutional shareholders. With an improved balance sheet and enhanced access to capital, we are now better positioned to continue improving on our cost structure, build San Rafael and deliver on our stated goal of generating value for our shareholders.

As quoted in the press release:

Each Unit will consist of one common share of the Company (each a “Common Share”) and one quarter of one Common Share purchase warrant of the Company (each whole warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one Common Share (each, a “Warrant Share”) at an exercise price of C$0.39 per Warrant Share for a period of 5 years following the closing date of the Offering.
The net proceeds of the Offering are expected to be used by the Company for capital programs at the Galena Complex and San Rafael Property, debt repayment, working capital and general corporate purposes.
All securities issued in the Offering will be subject to a statutory four month hold period. Closing of the private placement is subject to negotiation and execution of definitive documentation and receipt of all regulatory approvals, including approval of the Toronto Stock Exchange. Closing of the Offering is expected to occur on or about June 9, 2016.

 

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