Impact Silver Announces $3.5 Million Non-Brokered Financing with a Lead Order from Strategics Trafigura Pte Ltd. and Palisades Goldcorp Ltd.

Rhea-AI Summary

IMPACT Silver Corp (ISVLF) has announced a $3.5 million non-brokered private placement with strategic investors Trafigura PTE and Palisades Goldcorp The financing consists of:

- A LIFE offering of $1.75M allocated to Trafigura (8.75M units at $0.20/unit)

- A standard private placement of $1.75M, with Palisades participating for $1.1M (9.72M units at $0.18/unit)

The proceeds will be used to:

• Accelerate exploration at the Plomosas zinc-lead-silver property in Chihuahua, Mexico
• Develop silver assets at Royal Mines of Zacualpan district
• Improve operational productivity and throughput

The offering is expected to close around May 15, 2025, subject to regulatory approvals.

Positive

• Strategic investment from major commodities player Trafigura and resource-focused Palisades Goldcorp
• Secured $3.5M in new capital for exploration and operational improvements
• Timing aligns with silver prices approaching 52-week highs
• Only 600m of 6km structure tested at Plomosas, indicating significant exploration potential

Negative

• Dilutive effect from issuing approximately 18.47M new units
• Different pricing tiers ($0.20 vs $0.18) may disadvantage some investors
• Subject to regulatory approval and closing conditions

Vancouver, British Columbia--(Newsfile Corp. - April 15, 2025) - IMPACT Silver Corp. (TSXV: IPT) (OTCQB: ISVLF) (FSE: IKL) ("IMPACT" or the "Company") is pleased to announce a non-brokered private placement of $3.5 million of the Company (the "Units") with lead orders from strategic investors, Trafigura PTE LTD. ("Trafigura") and Palisades Goldcorp Ltd. ("Palisades"). The non-brokered private placement will consist of a LIFE offering for $1.75 million, which is being fully allocated to Trafigura, and a standard private placement for $1.75 million, of which Palisades is participating for $1.1 million.

Trafigura is a major supplier of vital resources, including non-ferrous and precious metals, as a market leader in the global commodities industry. Trafigura was founded in 1993 and is active in more than 150 countries.

Palisades is a publicly-listed investment company focused on the junior resource space. With a strong balance sheet and an experienced management team, Palisades provides investors with highly levered exposure to junior resource equities. Palisades is listed on the TSX Venture Exchange under the stock symbol PALI and holds a diversified portfolio of securities and derivatives, among which it holds a 21.64-per-cent interest in New Found Gold Corp.

Fred Davidson, President and CEO of IMPACT Silver states "We are pleased to welcome two notable institutional investors into IMPACT Silver. Trafigura has collaborated with IMPACT for many years and this investment signifies their commitment to long-term support with us both at Guadalupe, Plomosas, and beyond. With Palisades Goldcorp, they have been instrumental in building multiple hundred-million-dollar-midcap gold companies and we are pleased to have them participating in this financing."

The financing will be under the (LIFE) of National Instrument 45-106, Prospectus Exemptions, and other private placement exemptions under NI 45-106. The LIFE portion of the Offering is referred to in this news release as the "LIFE Offering". The Company intends to raise gross proceeds of up to $1,750,000 from the sale of up to 8,750,000 units (the "LIFE Units") at a price of $0.20 per LIFE Unit, and up to $1,750,000 from the sale of up to 9,722,222 standard private placement units (the "Standard PP Units") at $0.18 per Standard PP Unit. Each LIFE Unit will consist of one common share of the Company and one half common share purchase warrant (each whole such warrant, a "Warrant"), with each Warrant entitling the holder thereof to acquire one common share of the Company (a "Warrant Share") at a price of $0.26 per Warrant Share for a period of 24 months from its date of issue. Each Standard PP Unit will consist of one common share of the Company and one full Warrant, with each Warrant entitling the holder thereof to acquire one Warrant Share at a price of $0.24 per Warrant Share for a period of 36 months from its date of issue.

The Company intends to use the proceeds from the Offering to accelerate exploration activity at its Plomosas high-grade zinc-lead-silver property located in Chihuahua, Mexico, further develop its prolific silver assets at its legacy Royal Mines of Zacualpan district, as well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs. Exploration activities include sampling, target definition, and drilling with the intention of expanding the existing JORC mineral resource at Plomosas, where only 600m of the 6-kilometre-long structure has been tested. The region is known for hosting some of the largest carbonate replacement deposits in the world. As such, the Company intends to allocate a portion of the proceeds to continue development and grow production at the Plomosas high-grade zinc deposit as zinc prices continue to outperform on the back of forecasted supply deficits.

Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions, the LIFE Offering is being made pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the "Listed Issuer Financing Exemption"). The securities offered under the Listed Issuer Financing Exemption will not be subject to a hold period in accordance with applicable Canadian securities laws. There is an offering document (the "Offering Document") related to the LIFE Offering that can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.impactsilver.com. Prospective investors should read this Offering Document before making an investment decision.

The Offering is scheduled to close on or about the week of May 15, 2025 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange (the "Exchange"). The Company may pay finder's fees or commissions on a portion of the Offering, subject to compliance with the policies of the Exchange and applicable securities legislation. All common shares and Warrants issued as part of the Standard PP Units will bear a hold period of four months and one day from the date of issuance.

ABOUT IMPACT SILVER

IMPACT Silver Corp. (TSXV: IPT) is a successful producer-explorer with two mining projects in Mexico.

• Royal Mines of Zacualpan Silver-Gold District: IMPACT owns 100% of the 211 km² Zacualpan project in central Mexico where four producing underground silver mines and one open pit mine feed the central 500 tpd Guadalupe processing plant. To the south, the Capire Project includes a 200 tpd processing pilot plant adjacent to an open pit silver mine with an NI 43-101 inferred mineral resource of over 4.5 million ozs silver, 48 million lbs zinc and 21 million lbs lead (see IMPACT news release dated January 18, 2016, for details and QP statement). Company engineers are reviewing Capire for a potential restart of operations to leverage improving commodity prices. Over the past 18 years, IMPACT has developed multiple exploration zones into commercial production and has produced over 13 million ounces of silver, generating revenue of more than $277 million, with no long-term debt.

• Plomosas Zinc-Lead-Silver District: Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The Company recently restarted mining operations and is ramping up production toward design capacity levels. Exploration potential at Plomosas is exceptional along the 6 km-long structure. This is in addition to other exploration targets on the 3,019-hectare property including untested copper-gold targets with indications of high-grade material at surface. Regionally, Plomosas lies in the same mineral belt as some of the largest carbonate replacement deposits in the world.

Quality Control/Quality Assurance

Samples reported in this news release were analyzed by ALS Group, an internationally recognized analytical services provider. Samples analyzed by ALS used a multielement ICP package for base metals and silver. Assays for base metals >1% used an overlimit ICP method. Certified Reference Materials and internal control samples are added to the sample stream at regular intervals to track accuracy of assays.

Qualified Person and NI 43-101 Disclosure

Jose Antonio Olmedo, P.Geol., a Director of IMPACT Silver Corp., is a "Qualified Person" within the meaning of NI 43-101 and has approved the technical information contained in this news release.

Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com. Follow us on X (formerly Twitter) @IMPACT_Silver and LinkedIn at https://www.linkedin.com/company/impactsilver.

On behalf of IMPACT Silver Corp.

"Frederick W. Davidson"

President & CEO

For more information, please contact:
Jerry Huang
CFO | Investor Relations
O: (604) 681 0172 or inquiries@impactsilver.com
C: (778) 867 7909 Direct

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 regarding interpretation of drill results, activity at the projects and estimated timing thereof, the potential for defining and extending the known mineralization, exploration potential on the properties, and plans for drilling and future operations at the Company's projects or plans for financing.

Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitation, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, criminal activity, metal prices, political and economic factors, community relations, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, pandemics 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 or beliefs, opinions, projections or other factors, except as required by law.

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 at Zacualpan 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 mineral resources or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.

303-543 Granville Street
Telephone 604 664-7707
Vancouver, BC, Canada V6C 1X8
www.impactsilver.com
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/248661

FAQ

What is the size and structure of ISVLF's latest private placement financing?

ISVLF announced a $3.5M private placement split into two parts: $1.75M LIFE offering at $0.20/unit to Trafigura and $1.75M standard placement at $0.18/unit with Palisades investing $1.1M.

How will ISVLF use the proceeds from the $3.5M financing?

The proceeds will fund exploration at Plomosas property, develop Royal Mines of Zacualpan assets, and improve operational productivity as silver prices approach 52-week highs.

What are the warrant terms for ISVLF's private placement?

LIFE Units include half warrants at $0.26 for 24 months, while Standard PP Units include full warrants at $0.24 for 36 months.

When is ISVLF's private placement expected to close?

The private placement is scheduled to close on or about the week of May 15, 2025, subject to TSX Venture Exchange approval.