Sep 01, 2016
Argentum Announces $1,050,000 Investment By Sprott Mining Inc.
September 1, 2016 -- Argentum Silver Corp. (ASL-V) ("Argentum" or the "Company") is pleased to announce a private placement in the Company by Sprott Mining Inc. ("SMI") for gross proceeds of $1,050,000 through the issuance of 15,000,000 Units at a price of $0.07 per unit. Each Unit will consist of one common share of the Company and one share purchase warrant ("Warrant"). Each Warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.11 per share for a period of three years from the closing date. Closing of the private placement is subject to obtaining all necessary regulatory approvals.
Certain eligible persons (the "Finders") will be paid a cash commission equal to 7% of the proceeds raised from the subscriber introduced to the Company by such Finder, and also issued broker warrants (the "Broker Warrants") equal to 7% of the securities purchased by such subscriber. Each Broker Warrant entitles the holder thereof to purchase one Common Share for a period of three (3) years from the closing of the Offering at a price of $0.07 per Common Share.
SMI is 100% indirectly and beneficially owned by Eric Sprott. As a result of this investment, on closing SMI will own 15,000,000 Units (representing 56.9% of the issued and outstanding Common Shares on a non-diluted basis and 73.2% on a partially diluted basis). Shareholders of the Company will be asked to approve SMI as a new "Control Person" by way of shareholder consent resolution as a condition of closing. After closing, a copy of SMI's early warning report will appear on the Company's profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com.
All securities issued under the private placement will be subject to a four-month hold period.
Pursuant to the terms of the private placement SMI shall be entitled to nominate that number of directors that constitutes not less than 30% of the directors of the Company. It is anticipated that SMI will appoint three directors to the board after the next annual general meeting to be held on September 19, 2016.
The Units will be acquired by SMI for investment purposes. SMI has a long-term view of the investment and may acquire additional common shares of Argentum either on the open market or through private acquisitions or sell the common shares either on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors. A copy of SMI's early warning report will appear on the Company's profile on SEDAR at www.sedar.com and may also be obtained by calling (416) 362-7172 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J2)
About Argentum Silver
Argentum holds a 100% interest in the Coyote and Victoria properties located in Jalisco, Mexico. For further information, please visit www.argentumsilvercorp.com.
On behalf of the Board of Directors of Argentum Silver Corp.
President & CEO
For information please contact:
This News Release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Argentum relies upon litigation protection for forward-looking statements.
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.