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 entered into an agreement with a syndicate of strategic investors (the "Investors"), led by Palisades Goldcorp Ltd., pursuant to which the Investors have agreed to purchase, on a binding deal basis, 6,666,667 units (the "Units") of the Company at the price of $0.30 per Unit. The Units are being offered on a non-brokered private placement (the "Private Placement") basis.Each Unit will include one common share in the capital of the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each Warrant will be exercisable into one Share at an exercise price of $0.385 for 3 years from the date such Warrant is issued.
The Company will not pay any finders fee on this transaction.
The Company intends to use the proceeds of the Private Placement to further explore the Zacualpan land package such as Veta Grande open pit and gold anomalies at Valle De Oro, Dense Media Separation (DMS) engineering studies on the Capire Volcanic Massive Sulphide resource mill and production center, ongoing efficiency improvements at the Guadalupe production mill, as well as general working capital purposes.
It is expected that the closing of the Private Placement will occur in one tranche on or before April 20, 2020. The Private Placement is subject to the receipt of approval of the TSX Venture Exchange. The securities issued under the Private Placement will be subject to a hold period of four months and one day from the applicable closing date. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
About Palisades Goldcorp Ltd.:
Palisades Goldcorp is Canada's largest resource focused merchant bank. Palisades' management team has a demonstrated track record of making money and is backed by many of the industry's most notable financiers. With junior resource equities valued at generational lows, management believes the sector is on the cusp of a major bull market move. Palisades is positioning itself with significant stakes in undervalued companies and assets with the goal of generating superior returns. For more information, visit www.palisades.ca.
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 211km2 in central Mexico with excellent infrastructure and labor force. Over the past 15 years over 10 Moz of Silver has been produced, generating revenues of over $175 million, with no long-term debt. In the historic Royal Mines of Zacualpan Silver District three underground silver mines and one open pit 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 National Instrument 43-101 ("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 34,000 rock samples and over 54,000 drill core samples, analysed over 50,000 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.