Defiance Silver Corp (“Defiance” or the “Company”) (TSX-V: DEF) is pleased to announce a non-brokered private placement (the “Offering”) of up to 33,333,400 units of the Company (the “Units”) at a price of $0.30 per Unit for gross proceeds of up to $10,000,000, with a minimum of 13,333,400 units for gross proceeds of $4,000,000. The Offering is subject to an overallotment option whereby the Company may increase the Offering by up to 50% depending on market demand.
Each Unit will consist of one common share of the Company, one full common share purchase warrant (“Warrant”) and one Silver Participation Right (“SPR”). Each Warrant will entitle the holder to purchase one common share of the Company for a period of twelve months from the closing date of the Offering at a price of $0.65 per common share. Each Silver Participation Right will entitle the holder to receive 0.005 ounces of silver bullion or the equivalent value in Canadian dollars (being C$0.15 based on a C$30 per ounce silver price) from the Company’s future silver production.
Closing of the Offering is subject to receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. Securities issued under the Offering will be subject to a four month hold period which will expire four months from the date of closing of the Offering. The Company may pay finder’s fees in compliance with TSX Venture Exchange policies on some or all of the Offering.
The proceeds from the Offering will be used at the discretion of the Company for: general working capital purposes; to refurbish the Santa Gabriela processing plant and to develop the 10 mineral property concessions or licences, all held under option from IMPACT Silver Corp; and to develop the San Acacio Mineral property as held under a Property Option Agreement. All development of the above assets, located in the Vetagrande, Zacatecas area of Mexico (the Mexican Interests), will be carried out with a view to placing the said mill into production and deriving minerals products therefrom.
Defiance believes that the innovative Silver Participation Right will provide a mechanism for participating investors to gain direct access to physical silver bullion and direct exposure to future upside in the price of silver.
About Defiance Silver:
Defiance Silver Corp. is a near term silver producer engaged in the acquisition, exploration, and development of advanced silver projects in Zacatecas Mexico. The Company’s efforts are focused on: 1) the purchase and refurbishment of the 200 tpd Santa Gabriela Mill, 2) the exercising of an option to purchase the San Acacio Mine, and 3) the definition of feed for the Santa Gabriela Mill from surface dumps and the San Acacio Mine with its historical resource (reference Defiance Silver Corp New release dated November 1, 2011).
On behalf of the Directors
“W.D. Bruce Winfield”
W.D. Bruce Winfield
President and CEO
For additional information please visit the Company’s website at www.defiancesilver.com.
Neither 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
1500 - 409 Granville Street
Vancouver, BC V6C 1T2
Forward-Looking Statements. This Defiance News Release may contain certain “forward-looking” statements and information relating to Defiance that are based on the beliefs of Defiance management, as well as assumptions made by and information currently available to Defiance management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Specifically, there is no assurance Defiance will be able to raise the minimum or maximum private placement on the terms and conditions referred to above. Defiance does not assume the obligation to update any forward-looking statement.