VANCOUVER, BC, June 13,
2023 /CNW/ - Silver Valley Metals Corp. (TSXV:
SILV) (OTCQB: SVMFF) ("Silver Valley" or the "Company"), a
brownfields exploration Company with two potential high impact
projects that comprise lithium - potassium (sulphate of
potash) located in Zacatecas
and San Luis Potosi, Mexico and
silver-zinc-lead located in north Idaho,
USA respectively, is pleased to announce that it will
make an application to the TSX Venture Exchange (the "Exchange")
for approval of the implementation of a proposed early warrant
exercise incentive program (the "Program") intended to encourage
the early exercise of up to 12,897,114 outstanding warrants (the
"Eligible Warrants") of the Company.
The Program will commence on the date of receipt of conditional
acceptance by the Exchange and will expire at 4:00 p.m.
(PDT) 14 days thereafter (the "Program Expiry Date").
The Company feels the Program will fairly reward the investors of
the most recent financing for their patience during this volatile
year, allowing the Company to keep the share float within the
current shareholder base and views this as the least dilutive
option at this time.
The Eligible Warrants were issued by the Company pursuant to a
private placement financing completed on January 3, 2023. The Eligible Warrants are
exercisable to acquire one common share of the Company at a price
of $0.15 per share, with 9,297,114
Eligible Warrants expiring November 17,
2024 and 3,600,000 Eligible Warrants expiring January 3, 2025.
To encourage the early exercise of the Eligible Warrants, the
Company is seeking approval from the Exchange to an amendment to
the terms of the Eligible Warrants to enable the warrant holders to
receive an Incentive Warrant (as defined and described below) for
each Eligible Warrant exercised on or prior to 4:00 p.m. (PDT) on the Program Expiry Date at the
price of $0.11 per Eligible
Warrant.
To be eligible for the Program, the holder of the Eligible
Warrants must deliver the following documents to the Company on or
prior to 4:00 p.m. on the Program
Expiry Date, 14 days following conditional acceptance by the
Exchange, as referenced above:
- A duly completed and executed Subscription Form, in the form as
attached as Schedule "B" to the Eligible Warrant Certificate;
- The original certificate representing the Eligible Warrants
being exercised (an electronic copy is acceptable);
- The applicable aggregate exercise price payable to the Company;
and
- A duly completed and executed exemption certificate, the form
of which will be provided to warrants holders by the
Company.
Subject to the receipt of Exchange approval, each holder of an
Eligible Warrant who elects to exercise at $0.15 on or prior to 4:00
p.m. (PDT on the Program Expiry Date will receive:
- the common shares in the capital of the Company to which they
are otherwise entitled under the terms of the Eligible Warrants;
and
- and one common share purchase warrant of the Company (the
"Incentive Warrant") entitling the holder to acquire an additional
common share of the Company at a price of $0.11 per share, or such other exercise price as
may be acceptable to the Exchange, for a period of 24 months from
the date of issuance of the Incentive Warrants. The Incentive
Warrants and any shares issued on exercise thereof will be subject
to a 4-month hold period from the date of issuance of the Incentive
Warrants.
On receipt of conditional approval from the Exchange, the
Company will issue a further news release. Terms and
conditions of the proposed Program will be delivered via email to
all holders of the Eligible Warrants.
To the extent that holders of Eligible Warrants take advantage
of the opportunity to exercise their Eligible Warrants early,
proceeds will be used to complete the phase 2 exploration campaign
at the Ranger-Page project including a multi-kilometre trenching
program, numerous geochemical surveys including soil sampling, rock
chip and channel sampling, and mapping; to maintain its lithium -
sulphate of potash (Li-SOP) project / deposit(s) in Mexico, including financing the legal
negotiation regarding the lithium aspect of its deposits which the
Company anticipates being resolved in the coming months; project
option payment for the Ranger-Page project; and general working
capital.
Directors or Officers of the Company own or control less than 5%
of the Eligible Warrants. The Company is not aware of any potential
new insider position that would be created upon the exercise of the
Placement Warrants nor the Incentive Warrants.
The securities being offered will not be registered under the
United States Securities Act of 1933, as amended and may not be
offered or sold within the United
States absent registration or an exemption from the
registration requirements. This news release does not constitute an
offer to sell or solicitation of an offer to buy any of the
securities in the United States.
On behalf of the Board of Directors of Silver Valley Metals
Corp.
"Brandon Rook"
Brandon Rook, President &
CEO, Director
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
The information contained herein contains "forward-looking
statements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information that
is based on assumptions of management, forecasts of future results,
and estimates of amounts not yet determinable. Any statements that
express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be "forward-looking
statements." Forward-looking statements are subject to a variety of
risks and uncertainties which could cause actual events or results
to differ from those reflected in the forward-looking statements,
including, without limitation: risks related to failure to obtain
adequate financing on a timely basis and on acceptable terms; risks
related to the outcome of legal proceedings; political and
regulatory risks associated with mining and exploration; risks
related to the maintenance of stock exchange listings; risks
related to environmental regulation and liability; the potential
for delays in exploration or development activities or the
completion of feasibility studies; the uncertainty of
profitability; risks and uncertainties relating to the
interpretation of drill results, the geology, grade and continuity
of mineral deposits; risks related to the inherent uncertainty of
production and cost estimates and the potential for unexpected
costs and expenses; results of prefeasibility and feasibility
studies, and the possibility that future exploration, development
or mining results will not be consistent with the Company's
expectations; risks related to commodity price fluctuations; and
other risks and uncertainties related to the Company's prospects,
properties and business detailed elsewhere in the Company's
disclosure record. Should one or more of these risks and
uncertainties materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those described
in forward-looking statements. Investors are cautioned against
attributing undue certainty to forward-looking statements. These
forward-looking statements are made as of the date hereof and the
Company does not assume any obligation to update or revise them to
reflect new events or circumstances. Actual events or results could
differ materially from the Company's expectations or
projections.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/silver-valley-metals-announces-financing---early-warrant-exercise-incentive-program-301849098.html
SOURCE Silver Valley Metals Corp.
