Silver Elephant Mining Corp. Files Early Warning Report in Respect of Victory Nickel Inc.

Rhea-AI Summary

Silver Elephant Mining Corp. (ELEF) has filed an early warning report under NI 62-103 following its acquisition of 40,000,000 common shares of Victory Nickel Inc. (VN) for $1,000,000 at $0.025 per Share. The acquisition was finalized on February 8, 2021, making ELEF a holder of approximately 29.0% of VN's outstanding shares. ELEF plans to evaluate its investment and may adjust its holdings. A voting trust agreement between ELEF and VN has been established, ensuring that ELEF votes in line with VN's directives.

Positive

• Acquisition of 40,000,000 shares represents a significant investment of $1,000,000, potentially enhancing ELEF's market position.
• ELEF now holds approximately 29.0% of VN's issued shares, increasing its influence in the company.

Negative

• None.

VANCOUVER, BC & TORONTO, ON / ACCESSWIRE / February 10, 2021 / Silver Elephant Mining Corp. ("ELEF") today announced that ELEF has filed an early warning report under National Instrument 62-103 - The Early Warning System And Related Take-Over Bid And Insider Reporting Issues ("NI 62-103") in connection with its acquisition (the "Acquisition") of 40,000,000 common shares ("Shares") of Victory Nickel Inc. ("VN").

On January 21, 2021, ELEF and VN entered into an asset purchase agreement (the "APA") whereby, among other things, ELEF agreed to subscribe for and purchase, on a private placement basis, 40,000,000 Shares at a deemed price of $0.025 per Share for aggregate consideration of $1,000,000 concurrent with the closing of the asset purchase under the APA, all of which occurred on February 8, 2021.

Immediately prior to the Acquisition, ELEF held no securities in VN. Immediately following the Acquisition, ELEF held 40,000,000 Shares which represents approximately 29.0% of the issued and outstanding Shares on a non-diluted basis. All 40,000,000 Shares are held directly by ELEF and no joint actor of ELEF holds any securities of VN.

ELEF acquired Shares for investment purposes. ELEF intends to evaluate its investment in VN and to increase or decrease its shareholdings from time to time as it may deem appropriate.

ELEF and VN have entered into a voting trust agreement in respect of the Shares acquired by ELEF whereby ELEF has agreed it shall either vote the Shares held by ELEF in accordance with the direction of VN or shall abstain from voting such Shares.

An early warning report will be filed by ELEF in accordance with applicable securities laws and will be available on SEDAR under the VN's profile at www.sedar.com or may be obtained directly from the ELEF upon request at the telephone number below. The head office of VN is located at 80 Richmond Street West, Suite 1802, Toronto, Ontario M5H 2A4 and the Shares are traded on the Canadian Securities Exchange. The head office of ELEF is located at Suite 1610 - 409 Granville Street, Vancouver, British Columbia V6C 1T2. There are no joint actors in connection with the Acquisition.

Contact Information:

John Lee, Chief Executive Officer,
Silver Elephant Mining Corp.
604 569-3661
jlee@silverelef.com

SOURCE: Silver Elephant Mining Corp.

View source version on accesswire.com:
https://www.accesswire.com/628881/Silver-Elephant-Mining-Corp-Files-Early-Warning-Report-in-Respect-of-Victory-Nickel-Inc

FAQ

What is the recent acquisition by Silver Elephant Mining Corp. (SILEF)?

Silver Elephant Mining Corp. (ELEF) acquired 40,000,000 shares of Victory Nickel Inc. (VN) for $1,000,000.

What percentage of Victory Nickel Inc. (VN) does Silver Elephant Mining Corp. (SILEF) hold after the acquisition?

After the acquisition, Silver Elephant Mining Corp. holds approximately 29.0% of Victory Nickel Inc.'s issued shares.

When was the acquisition of Victory Nickel Inc. (VN) completed by Silver Elephant Mining Corp. (SILEF)?

The acquisition was completed on February 8, 2021.

How does Silver Elephant Mining Corp. (SILEF) plan to manage its investment in Victory Nickel Inc. (VN)?

Silver Elephant Mining Corp. intends to evaluate its investment in Victory Nickel Inc. and may adjust its shareholdings as deemed appropriate.