IMPACT Silver increases private placement to C$13 million on strong demand

VANCOUVER - IMPACT Silver Corp. (TSXV:IPT) (OTCQB:ISVLF), a $66.4 million market cap mining company whose stock has doubled year-to-date according to InvestingPro data, has upsized its previously announced "bought deal" private placement from C$8 million to C$13 million due to strong investor interest, the company announced Wednesday.

Under the expanded offering, Red Cloud Securities Inc. and Research Capital Corporation will purchase for resale 36,111,112 units at C$0.36 per unit. Each unit consists of one common share and one warrant exercisable at C$0.45 for 24 months after closing.

The underwriters also have an option to purchase up to an additional 8,333,334 units at the same price for additional proceeds of approximately C$3 million.

IMPACT plans to use the proceeds to advance underground development at its Guadalupe mine and increase processing plant throughput at its wholly-owned Guadalupe Production Centre in Mexico. Funds will also support expanding operations and accelerating resource definition drilling at the company’s Plomosas zinc-silver-lead mine in Chihuahua, Mexico, with remaining proceeds allocated to working capital.

The offering is expected to close on September 17, subject to regulatory approvals including from the TSX Venture Exchange.

Units will be offered to purchasers in Canadian provinces except Quebec under the listed issuer financing exemption, with securities expected to be immediately freely tradeable in accordance with Canadian securities legislation.

IMPACT Silver operates two mining projects in Mexico, including the Royal Mines of Zacualpan Silver-Gold District and the recently restarted Plomosas Zinc-Lead-Silver operation.

The information in this article is based on a company press release statement.

In other recent news, IMPACT Silver Corp. has secured C$8 million in financing to support its mining operations in Mexico. The company entered into an agreement with Red Cloud Securities Inc. and Research Capital Corporation for an underwritten offering. This offering consists of 22,222,222 units, each priced at C$0.36. Each unit includes one common share and one warrant, which is exercisable at C$0.45 over a 24-month period. Additionally, the underwriters have the option to increase the proceeds by up to C$2 million through the purchase of an additional 5,555,556 units. These developments indicate a strategic move by IMPACT Silver Corp. to bolster its financial resources.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.