VANCOUVER - Impact Silver raises C$16 million through private placement

VANCOUVER - IMPACT Silver Corp. (TSXV:IPT) (OTCQB:ISVLF) announced Wednesday it has closed its previously announced "bought deal" private placement, raising gross proceeds of C$16,000,000.56, including the full exercise of the underwriters’ over-allotment option. The mining company, with a market capitalization of $58.79 million, has demonstrated strong momentum with a 52.91% year-to-date return, according to InvestingPro data.

The company sold 44,444,446 units at C$0.36 per unit, with each unit consisting of one common share and one purchase warrant. Each warrant allows the holder to purchase one common share at C$0.45, exercisable until September 17, 2027.

Red Cloud Securities Inc. and Research Capital Corporation acted as co-lead underwriters for the offering.

IMPACT Silver plans to use the proceeds to advance development at its high-grade Guadalupe mine and increase processing plant throughput at its Guadalupe Production Centre in Mexico, expand operations at its Plomosas zinc-silver-lead mine in Chihuahua, and for general working capital purposes.

The units were issued to Canadian purchasers under the listed issuer financing exemption, making the underlying shares immediately freely tradeable under Canadian securities legislation. Units were also offered in offshore jurisdictions and the United States on a private placement basis.

As compensation, underwriters received C$1,040,000.04 in cash fees and 2,888,888 non-transferable common share purchase warrants exercisable at C$0.36 until September 17, 2027.

The closing remains subject to final approval from the TSX Venture Exchange.

IMPACT Silver operates two mining projects in Mexico, including the Royal Mines of Zacualpan Silver-Gold District and the Plomosas Zinc-Lead-Silver District. The company has produced over 13.5 million ounces of silver over the past 19 years, according to the press release statement. With impressive revenue growth of 69.44% in the last twelve months, the company shows strong operational momentum. Unlock more insights and discover 8 additional key financial metrics with InvestingPro.

In other recent news, IMPACT Silver Corp. has announced an increase in its private placement to C$13 million, up from the initially planned C$8 million, due to strong investor demand. This upsized offering will involve Red Cloud Securities Inc. and Research Capital Corporation purchasing 36,111,112 units at a price of C$0.36 per unit. Each unit includes one common share and a warrant exercisable at C$0.45, valid for 24 months after the closing date. Previously, IMPACT Silver had secured a C$8 million financing agreement with the same underwriters, with an option to increase proceeds by an additional C$2 million. This earlier offering consisted of 22,222,222 units, each priced similarly at C$0.36, also including a warrant exercisable at C$0.45 for a 24-month period. The underwriters were also granted an over-allotment option to purchase up to an additional 5,555,556 units. These developments reflect heightened investor interest in IMPACT Silver’s operations.

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