NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES
OR FOR DISSEMINATION IN THE UNITED STATES
IMPACT Silver Corp. ("IMPACT" or the "Company") is pleased to announce that it has completed the first tranche (the "First Tranche") of the non-brokered private placement (the "Private Placement") announced on June 19th, 2019. Despite challenging junior mining markets, the Company has oversubscribed the financing originally announced for $1.0 million. At closing of the First Tranche, the Company received aggregate gross proceeds of $1,235,720.20, comprised from the issuance of 4,752,770 units ("Units") of the Company at a price of $0.26. Each Unit consists of one common share (a "Share") and one warrant (a "Warrant"). Each Warrant entitles the holder to acquire one Share at a price of $0.30 and expires in 36 months.
Concurrent to the closing of the First Tranche, IMPACT is announcing an increase to the second tranche of financing of up to $1.50 million with the same terms (the "Second Tranche"). The amended Second Tranche of the previously announced Private Placement is subject to receipt of approval of the TSX Venture Exchange. The securities issued under the Second Tranche will be subject to a hold period of four months and one day from the applicable closing date. The Company reserves the right to increase the size of the Second Tranche by up to 30%.
Frederick Davidson, CEO and President of IMPACT comments "The strong interest level in our financing in summer months confirm the quality of IMPACT shareholder's belief in our large land package's potential and proven past production level. With additional capital on hand from this financing the Company aims to continue exploring high potential gold and copper assets for near term development around Santa Teresa, continue to optimize the Guadalupe operation to reach positive operational cashflow, continue with Dense Media Separation (DMS) study at Capire Volcanic Massive Sulphide (VMS) project, and push for value creation via joint ventures on the Taxco North areas.
The Private Placement is subject to the receipt of final approval from the TSX Venture Exchange.
The Shares and Warrants issued under the Private Placement today are subject to a standard hold period of four months and one day, expiring on November 6, 2019, all in accordance with applicable securities laws.
About IMPACT Silver:
IMPACT Silver Corp. is a successful silver explorer-producer with two processing plants on adjacent districts within its 100% owned mineral concessions covering 357 km2 in central Mexico with excellent infrastructure and a supportive labor force. Over the past fourteen years over 9 million ounces of Silver has been produced, generating revenues of $168 million, with no long-term debt. In the historic Royal Mines of Zacualpan Silver District three underground silver mines feed the central 535 TPD Guadalupe processing plant. To the south, in the Mamatla District the Capire processing plant is currently rated at 200 tpd, but is expandable. It is adjacent to an open pit silver mine with a NI-43-101 compliant resource of over 4.5 Moz Silver, 48 million lbs Zinc and 21 million lbs Lead (see IMPACT news release dated January 18, 2016) that is awaiting higher silver prices to be restarted. Since acquiring the project, IMPACT has compiled an exhaustive database with over 5,000 old mine workings, assayed over 50,000 rock samples and over 70,000 drill core samples, analyzed over 85,000 soil samples, and put six mines into production. Additional information about IMPACT and its operations can be found on the Company website at www.IMPACTSilver.com .
Qualified Person and NI 43-101 Disclosure
George Gorzynski, P.Geo is a "qualified person" within the meaning of NI 43-101 and has reviewed, verified and approved the technical information disclosure contained in this press release.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
President & CEO
For more information, please contact:
CFO | Investor Relations
(604) 681 0172 or email@example.com
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.
Forward-Looking and Cautionary Statements
This IMPACT News Release may contain certain "forward-looking" statements and information relating to IMPACT that is based on the beliefs of IMPACT management, as well as assumptions made by and information currently available to IMPACT management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement and the anticipated size of the Second Tranche.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, the Company's inability to secure the required Exchange acceptance required for the increase to the Second Tranche offering exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. IMPACT does not assume the obligation to update any forward-looking statement.
The Company's decision to place a mine into production, expand a mine, make other production related decisions or otherwise carry out mining and processing operations, is largely based on internal non-public Company data and reports based on exploration, development and mining work by the Company's geologists and engineers. The results of this work are evident in the discovery and building of multiple mines for the Company and in the track record of mineral production and financial returns of the Company since 2006. Under NI 43-101 the Company is required to disclose that it has not based its production decisions on NI 43-101 compliant mineral resource or reserve estimates, preliminary economic assessments or feasibility studies, and historically such projects have increased uncertainty and risk of failure.
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