Silver One Resources Announces Private Placement Financing

Rhea-AI Summary

Silver One Resources announced a non-brokered private placement financing of 19,642,857 units at $0.28 per unit, totaling $5.5 million. Each unit includes one common share and one-half of a common share purchase warrant, with each whole warrant exercisable at $0.40 for three years. Proceeds will fund exploration, drilling, and working capital. The offering's securities will be restricted from resale for four months and one day. Additionally, the company seeks to extend the expiry date of 10,191,669 warrants from July 14, 2024, to July 14, 2025, maintaining the exercise price at $0.65. Both initiatives require TSX Venture Exchange approval.

Positive

• Raised $5.5 million through private placement financing.
• Funds allocated for exploration, drilling, and working capital.
• Warrants provide potential for additional future capital.
• Extension of warrants gives more time for market recovery and potential gains.

Negative

• Securities under offering are restricted from resale for over 4 months.
• Warrant exercise price at $0.40 may not be appealing if stock price remains below.
• Extension of 2020 warrants indicates previous capital was not fully utilized as planned.
• Requirement for TSX Venture Exchange approval introduces regulatory risk.

Vancouver, British Columbia--(Newsfile Corp. - June 13, 2024) - Silver One Resources Inc. (TSXV: SVE) (OTCQX: SLVRF) (FSE: BRK1) ("Silver One" or the "Company") is pleased to announce to announce a non-brokered private placement financing of 19,642,857 units (a "Unit") at a price of $0.28 per Unit for total proceeds of $5,500,000 (the "Offering").

Under the Offering, each Unit will consist of one common share (each, a "Common Share") and one-half of one common share purchase warrant (each whole common share purchase warrant, a "Warrant"). Each Warrant will entitle the holder to purchase a Common Share at an exercise price of $0.40 for a period of three years from the date of issue.

The securities under the Offering will be subject to restrictions on resale expiring four months and one day after issue. The Company may pay finders a fee in cash and/or share purchase warrants. The Company intends to use the net proceeds for exploration and drilling on the Company's mineral properties as well as general working capital purposes.

Closing of the Offering is subject to acceptance of the TSX Venture Exchange (the "Exchange").

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.

Extension of Previously Issued Share Purchase Warrants

The Company also announces that it will be applying for approval from the Exchange to extend the expiry date of 10,191,669 share purchase warrants (the "2020 Warrants") issued to subscribers under the Company's private placement that closed on July 14, 2020. The Company intends to extend the expiry date of the 2020 Warrants from July 14, 2024 to July 14, 2025. The exercise price of $0.65 and all other terms of the 2020 Warrants will remain unchanged for the extended exercise period. The extension is subject to approval of the Exchange.

About Silver One

Silver One is focused on the exploration and development of quality silver projects. The Company owns a 100%-interest in its flagship project, the past-producing Candelaria Mine located in Nevada. Potential reprocessing of silver from the historic leach pads at Candelaria provides an opportunity for possible near-term production. Additional opportunities lie in unmined historic resources as well as in previously identified high-grade silver intercepts down-dip, which can potentially increase the substantive silver mineralization along-strike from the two past-producing open pits.

The Company owns 636 lode claims and five patented claims on its Cherokee project located in Lincoln County, Nevada, host to multiple silver-copper-gold vein systems, traced to date for over 11 km along-strike.

Silver One also owns a 100% interest in the Silver Phoenix Project. The Silver Phoenix Project is a very high-grade native silver prospect, recently permitted for drilling, which lies within the "Arizona Silver Belt," immediately adjacent to the prolific copper producing area of Globe, Arizona.

For more information, please contact:

Silver One Resources Inc.
Gary Lindsey - VP, Investor Relations
Phone: 604-974‐5274

Mobile : (720) 273-6224
Email : gary@strata-star.com

Forward-Looking Statements

Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management's current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Silver One cautions that all forward-looking statements are inherently uncertain, and that actual performance may be affected by a number of material factors, many of which are beyond Silver One's control. Such factors include, among other things: risks and uncertainties relating to Silver One's limited operating history, ability to obtain sufficient financing to carry out its exploration and development objectives on the Candelaria Project, obtaining the necessary permits to carry out its activities and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Silver One undertakes no obligation to publicly update or revise forward-looking information.

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/212916

FAQ

What is the private placement financing by Silver One Resources?

Silver One Resources announced a private placement financing of 19,642,857 units at $0.28 per unit, raising $5.5 million.

What does each unit in Silver One Resources' private placement include?

Each unit includes one common share and one-half of a common share purchase warrant exercisable at $0.40 for three years.

What are the intended uses for the proceeds from Silver One Resources' financing?

The proceeds will be used for exploration, drilling on the company's mineral properties, and general working capital.

When do the resale restrictions on Silver One Resources' offering securities expire?

The resale restrictions expire four months and one day after the issue date.

What extension is Silver One Resources seeking for its 2020 warrants?

The company seeks to extend the expiry date of 10,191,669 warrants from July 14, 2024, to July 14, 2025.