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 closed the binding deal non-brokered financing, first announced April 13th, 2020 (the "Private Placement").
The Company received aggregate gross proceeds of $2,000,000 from the issuance of 6,666,667 units (the "Units") of the Company at a price of $0.30 per Unit. Each Unit will comprise one common share in the capital of the Company (each a "Share") and one common share purchase warrant (each a "Warrant"). Each Warrant entitles the holder to acquire one Share at a price of $0.385 and expires in 36 months from the closing date. All securities issued under the Private Placement will be subject to a hold period expiring four months and one day from the closing date.
Fred Davidson, CEO of IMPACT comments, "We welcome a strategic investor group for the full allotment of this binding financing. Given these unprecedented times of uncertainty, a stronger balance sheet ensures future growth for all stakeholders as well as offer opportunities and strategic directions on new assets. I want to thank our stakeholders and team for the ongoing dedication to our operation and growth."
The Company intends to use the proceeds of the Private Placement to further explore the Zacualpan land package including extensions to the Veta Negra open pit and gold anomalies at Valle De Oro, mineral pre-concentration tests at the Capire Production Centre, ongoing efficiency improvements at the Guadalupe production mill, and general working capital purposes.
The Company has not paid any finders fees on this transaction.
The Private Placement is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory approvals, including acceptance of the TSX Venture Exchange.
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 IMPACT Silver Corp.
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.
On behalf of IMPACT Silver Corp.
"Frederick W. Davidson"
Frederick W. Davidson
President & CEO
For more information, please contact:
Jerry Huang
CFO & Investor Relations
inquiries@impactsilver.com
+236-863-2067
