/NOT FOR DISTRIBUTION TO
The Company now anticipates that the Offering shall be comprised of up to (i) 9,385,000 subscription receipts of the Company (the "Subscription Receipts") at a price of
The Company has granted the Agents an option to sell up to an additional 2,307,750 Subscription Receipts at the Issue Price for additional gross proceeds of up to
The gross proceeds of the Subscription Receipt Tranche less 50% of the Commission (as defined below) and certain expenses of the Agents (such net amount, the "Escrowed Proceeds") will be placed into escrow and released to the Company, subject to the receipt of all required corporate, shareholder and regulatory approvals in connection with the Proposed Acquisition and the completion or satisfaction of all escrow release conditions (collectively, the "Escrow Release Conditions") as set out in the agency agreement to be entered into among the Company and the Agents in connection with the Offering. Provided that the Escrow Release Conditions are satisfied or waived (where permitted) prior to
The Company intends to use the net proceeds of the Offering for the development of the La Guitarra Property, advancement of engineering studies, and general working capital purposes.
The Subscription Receipt Tranche is expected to close on or about
In connection with the Offering, the Agents will receive a cash commission equal to 6% of the gross proceeds of the Offering (reduced to 3% for proceeds received pursuant to sales to certain purchasers on a "president's list") (the "Commission") and the Company will issue that number of compensation options to the Agents equal to 6% of the aggregate number of Subscription Receipts and Common Shares sold pursuant to the Offering (reduced to 3% for Subscription Receipts and Common Shares issued to certain purchasers on a "president's list") (the "Compensation Options"). Each Compensation Option will be exercisable for one Common Share (a "Compensation Share") at at a price of
All securities issuable in connection with the Offering shall be subject to a hold period ending on the date that is four months and one day following the applicable date of issuance, as set out in National Instrument 45-102 – Resale of Securities.
The securities offered have not been registered under the
On behalf of the board of directors of Sierra Madre Gold and Silver Ltd.,
"
President, Chief Executive Officer and Director
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and statements that are based on the beliefs of management and reflect the Company's current expectations. 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. Forward-looking statements and forward-looking information in this press release include, but are not limited to, statements with respect to the timing and completion of the Offering, the use of proceeds of the Offering and the receipt of regulatory approvals for the Offering. 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 information and forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking information or forward-looking statements that are contained or referenced herein, except as may be required in accordance with applicable securities laws. All subsequent written and oral forward-looking information and statements attributable to the Company or persons acting on its behalf is expressly qualified in its entirety by this notice regarding forward-looking information and statements.
SOURCE
© Canada Newswire, source