Deal sells 67 million units with quarter-share warrants at C$0.30 each
By Devika Patel
Knoxville, Tenn., May 20 – Americas Silver Corp. said it will raise about C$20 million in a private placement of units. GMP Securities LP and Medalist Capital Ltd. are the agents.
The company will sell about 67 million units of one common share and one quarter-share warrant at C$0.30 per unit, with each whole warrant exercisable at C$0.39 for five years. The strike price is a 25.81% premium to C$0.31, the May 19 closing share price.
Eric Sprott will participate.
Settlement is expected June 9.
Proceeds will be used for capital programs at the Galena Complex and San Rafael Property, debt repayment, working capital and general corporate purposes.
“We are very pleased to welcome Eric Sprott and new cornerstone institutional shareholders. With an improved balance sheet and enhanced access to capital, we are now better positioned to continue improving on our cost structure, build San Rafael and deliver on our stated goal of generating value for our shareholders,” president and chief executive officer Darren Blasutti said in a press release.
Americas Silver is a Toronto-based precious metals mining company that owns the Cosala Operations in Sinaloa, Mexico, and the Galena Mine complex in Idaho.
| Issuer: | Americas Silver Corp.
|
| Issue: | Units of one common share and one quarter-share warrant
|
| Amount: | C$20 million (approximate)
|
| Units: | 67 million (approximate)
|
| Price: | C$0.30
|
| Warrants: | One quarter-share warrant per unit
|
| Warrant expiration: | Five years
|
| Warrant strike price: | C$0.39
|
| Agents: | GMP Securities LP and Medalist Capital Ltd.
|
| Investor: | Eric Sprott
|
| Pricing date: | May 20
|
| Settlement date: | June 9
|
| Stock symbol: | Toronto: USA
|
| Stock price: | C$0.31 at close May 19
|
| Market capitalization: | C$113.58 million
|
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