Silvermet Inc. Announces Private Placement Offering
November 24 2017 - 4:32PM
Silvermet Inc. (“
Silvermet”) (TSXV:SYI) is pleased
to announce that, pursuant to the previously announced amalgamation
of Silvermet and Global Atomic Fuels Corporation (the
“
Amalgamation”) and subsequent consolidation of
share capital approved at each companies’ Annual & Special
Meeting of Shareholders held September 29, 2017 (collectively, the
“
Transaction”), Global Atomic Fuels Corporation
(“
Global Atomic”) is currently raising up to $3
million through the issuance of up to 12 million Units under a
brokered private placement led by Cantor Fitzgerald Canada
Corporation (the “
Offering”).
Each Unit is priced at $0.25 – which price is
equivalent to $0.116 per current Silvermet common share outstanding
– and consists of one common share and one-half of one common share
purchase warrant, exercisable at $0.50 for 18 months from closing
of the Transaction. On completion of the Transaction, the prices of
the Units and purchase warrants will be $0.32 and $0.64,
respectively. The Offering is expected to close on or about
December 8, 2017 and the Transaction is expected to close on or
about December 29, 2017.
Silvermet Share Consolidation and
AmalgamationSubject to the approval the TSX Venture
Exchange (“TSXV”), Silvermet will, immediately
prior to the Amalgamation, effect a consolidation of its issued and
outstanding common shares on the basis of one new Silvermet common
share for every 2.75 Silvermet common shares outstanding prior to
the consolidation (the “Silvermet Share
Consolidation”). Assuming completion of the Silvermet
Share Consolidation, at the effective time for the Amalgamation,
Silvermet will issue to each holder of Global Shares 0.7807 fully
paid and non-assessable common shares in its capital (the
“Exchange Ratio”) for each Global Share (the
“Resulting Issuer Shares”). Following the
Amalgamation, the purchase warrants issued pursuant to the Offering
will be exercisable for Resulting Issuer Shares, with the number of
Resulting Issuer Shares issuable and the exercise price of the
purchase warrants adjusted in accordance with the Exchange
Ratio.
Completion of the Offering and the Transaction
described above are subject to the approval of the TSX Venture
Exchange. For further information, please contact:
Stephen G. Roman
Chairman, President & CEO
sroman@silvermet.ca
THIS NEWS RELEASE IS INTENDED FOR
DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION
TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES.
“Neither the 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.”
Caution concerning forward-looking statements:
The information in this release may contain forward-looking
information under applicable securities laws. Forward-looking
statements in this news release include, but are not limited to,
information relating to the timing and completion of an Offering
and a Transaction involving Silvermet. This forward-looking
information is subject to known and unknown risks, uncertainties
and other factors that may cause actual results to differ
materially from those implied by the forward-looking information.
Factors that may cause actual results to vary include, but are not
limited to, inaccurate assumptions concerning the exploration for
and development of mineral deposits, political instability,
currency fluctuations, unanticipated operational or technical
difficulties, changes in laws or regulations, the risks of
obtaining necessary licenses and permits, changes in general
economic conditions or conditions in the financial markets and the
inability to raise additional financing. In particular, there can
be no assurance that the Offering or the Transaction will be
completed on terms satisfactory to Silvermet, if at all. Readers
are cautioned not to place undue reliance on this forward-looking
information. Silvermet does not assume the obligation to revise or
update his forward-looking information after the date of this
release or to revise such information to reflect the occurrence of
future unanticipated events except as may be required under
applicable securities laws. The information in this news release
includes the following non-IFRS financial measure: EBITDA. These
financial measures does not have any standardized meaning
prescribed by IFRS and are therefore unlikely to be comparable to
similar measures presented by other issuers.