Silver Elephant Announces Non-Brokered Private Placement of $210,000

Rhea-AI Summary

Silver Elephant Mining Corp. (SILEF) announces a non-brokered private placement to raise $210,000 through the sale of 700,000 units at $0.30 per unit. Directors to subscribe for up to 495,700 units. Proceeds to be used for working capital and general corporate purposes.

Positive

• The private placement aims to raise $210,000 through the sale of 700,000 units at $0.30 per unit.
• Directors of the company plan to subscribe for up to 495,700 units, generating gross proceeds of up to $148,710.
• Proceeds from the placement will be utilized for working capital and general corporate purposes.
• The securities issued will be subject to a hold period of four months plus one day from the date of issue.
• The private placement is contingent upon approval from the Toronto Stock Exchange.
• Insiders' participation in the placement is considered related party transactions under Multilateral Instrument 61-101.
• The company will rely on exemptions from formal valuation and minority shareholder approval requirements for insider participation.
• A material change report will be filed regarding the related party transactions.

Negative

• None.

Vancouver, British Columbia--(Newsfile Corp. - April 9, 2024) - Silver Elephant Mining Corp. (TSX: ELEF) (OTC: SILEF) (FSE: 1P2N) ("Silver Elephant" or the "Company"), is pleased to announce that it proposes to undertake a non-brokered private placement (the "Private Placement") to raise gross proceeds of $210,000 through the sale of 700,000 units (the "Units") at a price of $0.30 per Unit. Each Unit consists of one common share of the Company and one-half of one share purchase warrant with each whole warrant (the "Warrant") entitling the holder to purchase one additional common share of the Company at a price of $0.45 per share for a period of three years from issuance (the "Private Placement").

The securities issued as part of the Private Placement will be subject to a regulatory hold period of four months plus one day from the date of issue.

Proceeds of the Placement are expected to be used for working capital and general corporate purposes.

The Private Placement is subject to Toronto Stock Exchange approval.

The directors of the Company will be subscribing for, in the aggregate, up to 495,700 Units for gross proceeds of up to $148,710. The issuance of Units to insiders pursuant to the Placement will be considered related party transactions within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company relies on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Placement by insiders will not exceed 25% of the fair market value of the Company's market capitalization. The Company will file a material change report in respect of the related party transactions in connection with the Placement.

About Silver Elephant Mining Corp.

Silver Elephant is a silver mining and exploration company, with its flagship Pulacayo silver project in Bolivia.

Further information on Silver Elephant can be found at www.silverelef.com.

SILVER ELEPHANT MINING CORP.

ON BEHALF OF THE BOARD

"John Lee"
Executive Chairman

For more information about Silver Elephant, please contact Investor Relations:
+1.604.569.3661 ext. 101
info@silverelef.com www.silverelef.com

FORWARD-LOOKING INFORMATION

Certain statements contained in this news release, including statements which may contain words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions, and statements related to matters which are not historical facts, are forward-looking information within the meaning of applicable securities laws. Such forward-looking statements, which reflect management's expectations regarding the Company's future growth, results of operations, performance, business prospects and opportunities, are based on certain factors and assumptions and involve known and unknown risks and uncertainties which may cause the actual results, performance, or achievements to be materially different from future results, performance, or achievements expressed or implied by such forward-looking statements. Forward-looking information in this news release include the expected gross proceeds of the Private Placement, and use of proceeds raised from the Private Placement.

Forward-looking statements are based on reasonable assumptions by management as of the date of this news release, and there can be no assurance that actual results will be consistent with any forward-looking statements included herein. Readers are cautioned that all forward looking statements in this news release are made as of the date of this news release. The Company undertakes no obligation to update or revise any forward-looking statements in this news release to reflect circumstances or events that occur after the date of this news release, except as required by applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/204780

FAQ

What is the purpose of Silver Elephant Mining Corp.'s (SILEF) private placement?

The purpose of the private placement is to raise $210,000 through the sale of 700,000 units at $0.30 per unit.

How many units are directors of the company planning to subscribe for?

Directors of the company plan to subscribe for up to 495,700 units.

What will the proceeds from the placement be used for?

The proceeds from the placement will be used for working capital and general corporate purposes.

What is the hold period for the securities issued as part of the private placement?

The securities issued will be subject to a hold period of four months plus one day from the date of issue.

What approval is required for the private placement?

The private placement is subject to approval from the Toronto Stock Exchange.

How is insiders' participation in the placement classified?

Insiders' participation in the placement is considered related party transactions under Multilateral Instrument 61-101.

What exemptions will the company rely on for insider participation in the placement?

The company will rely on exemptions from formal valuation and minority shareholder approval requirements.

What report will the company file regarding the related party transactions?

A material change report will be filed regarding the related party transactions.