Defiance Silver Corp., a leading exploration company, has successfully closed the first tranche of its non-brokered private placement. The offering consisted of units of the company, with each unit priced at C$0.20. The aggregate gross proceeds from the offering amounted to C$2,613,900.
Each unit comprises one common share of the company and one-half of one common share purchase warrant. The warrant allows the holder to acquire one common share at a price of C$0.35 within 24 months after the closing date. The net proceeds from the offering will be utilized for exploration activities and general working capital purposes.
The securities issued in this offering are subject to a four-month hold period, expiring on November 13, 2024, in compliance with applicable securities legislation and the policies of the TSX Venture Exchange.
As part of the closing of the offering, the company paid finder’s fees to arm-length finders, totaling $146,809.00 in cash and 633,870 non-transferable warrants. The finder warrants entitle the holders to purchase common shares of the company at a price of C$0.20 per share for a period of two years following the closing date.
In a related party transaction, Ron Sowerby, a director of the company, purchased 100,000 units for a total consideration of $20,000. Following the private placement, Sowerby now owns 2,714,973 common shares and 200,000 warrants of the company.
Defiance Silver Corp. has also engaged AXINO Media GmbH, an arm’s length party, to provide services for the company, including investor relations activities. Under the corporate communication service agreement, AXINO will receive an annual payment of €50,000, paid quarterly, and additional fees for translation services. The agreement is subject to acceptance by the TSX Venture Exchange.
Furthermore, the company has entered into an administrative services agreement with an officer of the company, which has automatically renewed for a term of three months. As part of the agreement, the company will issue service shares on a semi-annual basis, with the number of shares determined by the closing price of the company’s shares on the last trading day of the month.
Defiance Silver Corp. is focused on advancing its Zacatecas project in the historic Zacatecas Silver District and the Tepal Gold/Copper Project in Michoacán state, Mexico. With a team of experienced mine developers, the company is committed to capital-efficient exploration and resource growth.