Defiance Silver Closes Third and Final Tranche of Upsized Private Placement

Rhea-AI Summary

Defiance Silver Corp (TSXV: DEF) has successfully closed the third and final tranche of its non-brokered private placement, raising C$975,000 through the issuance of 4,875,000 Units at C$0.20 per Unit. The total offering resulted in aggregate gross proceeds of C$3,267,800 from 16,339,000 Units.

Each Unit consists of one common share and one-half of one common share purchase warrant, with each whole warrant exercisable at C$0.35 for 24 months. The company paid finder's fees totaling C$166,368 and issued 831,840 Finder Warrants. The proceeds will support exploration activities and general working capital purposes.

The securities are subject to a four-month hold period, and the offering awaits final approval from the TSX Venture Exchange. Defiance Silver focuses on advancing the Zacatecas project in Mexico's historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state.

Positive

• Successful completion of private placement raising C$3.27M in total proceeds
• Additional working capital secured for exploration activities

Negative

• Share dilution due to issuance of 16,339,000 new units
• Additional potential dilution from exercise of warrants
• Significant finder's fees reducing net proceeds

Vancouver, British Columbia--(Newsfile Corp. - February 13, 2025) - Defiance Silver Corp. (TSXV: DEF) (FSE: D4E) (WKN: A1JQW5) ("Defiance" or the "Company") announces that it has closed a third and final tranche ("Third Tranche") of its non-brokered private placement (the "Offering") of units of the Company (the "Units") at a price of C$0.20 per Unit (the "Offering Price"). Under the Third Tranche, the Company issued 4,875,000 Units for aggregate gross proceeds of C$975,000.

In total, the Company issued 16,339,000 Units for aggregate gross proceeds of C$3,267,800 under the Offering.

Marketed Offering

Each Unit is comprised of one common share of the Company (each a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will be exercisable by the holder thereof to acquire one common share of the Company (each a "Warrant Share") at a price of C$0.35 at any time on or before the date which is 24 months after the Closing Date.

The net proceeds of the Offering will be used by the Company for exploration and general working capital purposes. Under applicable securities legislation and the policies of the TSX Venture Exchange, the securities issued in this Offering are subject to a four-month hold period from the issuance of the Units.

In connection with the closing of the Third Tranche, the Company paid finder's fees comprised of an aggregate cash commission of C$66,900 and an aggregate of 334,500 non-transferable warrants (each a "Finder Warrant") to arm-length finders. In total, the Company paid finder's fees comprised of an aggregate cash commission of C$166,368 and an aggregate of 831,840 Finder Warrants in connection with the Offering. Each Finder Warrant entitles the holder thereof to purchase one common share of the Company at a price of C$0.20 per common share for a period of two (2) years following its issuance, the whole in accordance with the rules and policies of the TSX Venture Exchange.

The Offering remains subject to the final approval of the TSX Venture Exchange.

About Defiance Silver Corp.

Defiance Silver Corp. (TSXV: DEF) (OTCQX: DNCVF) (FSE: D4E) is an exploration company advancing the district-scale Zacatecas project, located in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring, advancing, and developing several operating mines and advanced resource projects. Defiance's corporate mandate is to advance our projects through capital-efficient exploration focused on resource growth and new mineral discoveries.

On behalf of Defiance Silver Corp.

"Chris Wright"

Chairman of the Board

For more information, please contact: Investor Relations at +1 (604) 343-4677 or via email at info@defiancesilver.com.

www.defiancesilver.com

Suite 2900-550 Burrard Street

Vancouver, BC V6C 0A3

Canada

Tel: +1 (604) 343-4677

Email: info@defiancesilver.com

Disclaimer

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.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240726

FAQ

How much did Defiance Silver (DNCVF) raise in its final tranche of private placement?

Defiance Silver raised C$975,000 in the third and final tranche of its private placement through the issuance of 4,875,000 Units at C$0.20 per Unit.

What are the terms of the warrants issued in Defiance Silver's (DNCVF) private placement?

Each warrant is exercisable at C$0.35 to acquire one common share for a period of 24 months after the closing date.

What was the total amount raised by Defiance Silver (DNCVF) in the entire private placement?

The total private placement raised aggregate gross proceeds of C$3,267,800 through the issuance of 16,339,000 Units.

How will Defiance Silver (DNCVF) use the proceeds from the private placement?

The net proceeds will be used for exploration activities and general working capital purposes.

What finder's fees did Defiance Silver (DNCVF) pay for the private placement?

Defiance Silver paid total finder's fees of C$166,368 in cash and issued 831,840 Finder Warrants exercisable at C$0.20 for two years.