Americas Gold and Silver Corporation (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”) announced today that it has
completed its previously announced “bought deal” private placement
(the “Private Placement”) of subscription receipts (“Subscription
Receipts”). Pursuant to the Private Placement, the Company issued
an aggregate of 125,000,000 Subscription Receipts at an issue price
of C$0.40 per Subscription Receipt, for gross proceeds of C$50
million, which included 12,500,000 Subscription Receipts issued
pursuant to the exercise, in full, of the Underwriters’ option
granted to the Underwriters in connection with the Private
Placement.
The Private Placement was co-led by Cormark Securities Inc.
(“Cormark”) and TD Securities Inc., on behalf of a syndicate of
underwriters including Desjardins Securities Inc., Haywood
Securities Inc., Canaccord Genuity Corp., and Eight Capital
(collectively, the “Underwriters”).
The Subscription Receipts were issued pursuant to a subscription
receipt agreement dated October 30, 2024, among the Company,
Cormark and Computershare Trust Company of Canada, as subscription
receipt agent. Each Subscription Receipt represents the right of
the holder thereof to receive, without payment of additional
consideration or any further action on the part of the holder, one
common share of the Company upon satisfaction of certain escrow
release conditions, including the satisfaction or waiver of all
conditions precedent to the completion of Company’s previously
announced indirect acquisition of the remaining 40% interest in the
Galena Complex in Idaho, USA (the “Acquisition”) pursuant to a
purchase agreement (the “Purchase Agreement”) between the Company,
an affiliate of Eric Sprott (“Sprott”) and Paul Andre Huet, as
seller representative.
Closing of the Acquisition is expected to occur prior to the end
of the year, subject to receipt of the relevant approvals from
Company shareholders and the TSX and NYSE American and the
satisfaction or waiver of other customary conditions to
closing.
The proceeds from the Private Placement, less a portion of the
Underwriters’ fees and expenses of the Underwriters, are being held
in escrow pending the closing of the Acquisition. Following release
of the proceeds from escrow, the Company intends to use the net
proceeds of the Private Placement for growth initiatives at the
Galena Complex, the payment of cash consideration to Sprott in
accordance with the Purchase Agreement, the repayment of certain of
the Company’s existing indebtedness, the payment of transaction
expenses and for working capital and general corporate
purposes.
The Subscription Receipts were offered by way of: (a) private
placement in each of the provinces of Canada pursuant to applicable
prospectus exemptions under applicable Canadian securities laws;
(b) in the United States or to, or for the account or benefit of
U.S. persons, by way of private placement pursuant to the
exemptions from registration provided for under Rule 506(b) of
Regulation D under the United States Securities Act of 1933, as
amended (the “U.S. Securities Act”) and/or Section 4(a)(2) of the
U.S. Securities Act and similar exemptions from applicable
securities laws of any state of the United States; and (c) in
jurisdictions outside of Canada and the United States as are agreed
to by Americas and the Underwriters on a private placement or
equivalent basis.
The Subscription Receipts are subject to a four-month hold
period under applicable securities laws in Canada.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States, Canada or in any other jurisdiction where such offer,
solicitation or sale is unlawful. The securities have not been and
will not be registered under the U.S. Securities Act, or under any
securities laws of any state of the United States, and may not be
offered or sold, directly or indirectly, or delivered within the
United States or to, or for the account or benefit of, a U.S.
person or person in the United States, except in certain
transactions exempt from the registration requirements of the U.S.
Securities Act and any applicable securities laws of any state of
the United States. “United States” and “U.S. person” are as defined
in Regulation S under the U.S. Securities Act.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high‐growth precious
metals mining company with multiple assets in North America. The
Company owns and operates the Cosalá Operations in Sinaloa, Mexico,
manages the 60%‐owned Galena Complex in Idaho, USA, and is
re‐evaluating the Relief Canyon mine in Nevada, USA. The Company
also owns the San Felipe development project in Sonora, Mexico. For
further information, please see SEDAR+ at www.sedarplus.ca, EDGAR
at www.sec.gov or www.americas-gold.com.
Cautionary Statement on Forward‐Looking Information:
This news release contains “forward‐looking information” and
“forward-looking statements” (“forward-looking information”) within
the meaning of applicable securities laws. Often, but not always,
forward‐looking information can be identified by forward‐looking
words such as “anticipate”, “believe”, “expect”, “goal”, “plan”,
“intend”, “potential’, “estimate”, “may”, “assume” and “will” or
similar words suggesting future outcomes, or other expectations,
beliefs, plans, objectives, assumptions, intentions, or statements
about future events or performance. Forward‐looking information
includes, but is not limited to, the intended use of proceeds from
the Private Placement and the expected timing of the closing of the
Acquisition. Forward‐looking information is based on the opinions
and estimates of Americas as of the date such information is
provided and is subject to known and unknown risks, uncertainties,
and other factors that may cause the actual results, level of
activity, performance, or achievements of Americas to be materially
different from those expressed or implied by such forward‐looking
information. With respect to the business of Americas, these risks
and uncertainties include risks relating to widespread epidemics or
pandemic outbreak, actions that have been and may be taken by
governmental authorities to contain such epidemic or pandemic or to
treat its impact and/or the availability, effectiveness and use of
treatments and vaccines (including the effectiveness of boosters);
interpretations or reinterpretations of geologic information;
unfavorable exploration results; inability to obtain permits
required for future exploration, development or production; general
economic conditions and conditions affecting the industries in
which the Company operates; the uncertainty of regulatory
requirements and approvals; potential litigation; fluctuating
mineral and commodity prices; the ability to obtain necessary
future financing on acceptable terms or at all; the ability to
operate the Company’s projects; risks associated with the closing
and implementation of the Acquisition; and risks associated with
the mining industry such as economic factors (including future
commodity prices, currency fluctuations and energy prices), ground
conditions, illegal blockades and other factors limiting mine
access or regular operations without interruption, failure of
plant, equipment, processes and transportation services to operate
as anticipated, environmental risks, government regulation, actual
results of current exploration and production activities, possible
variations in ore grade or recovery rates, permitting timelines,
capital and construction expenditures, reclamation activities,
labor relations or disruptions, social and political developments,
risks associated with generally elevated inflation and inflationary
pressures, risks related to changing global economic conditions,
and market volatility, risks relating to geopolitical instability,
political unrest, war, and other global conflicts may result in
adverse effects on macroeconomic conditions including volatility in
financial markets, adverse changes in trade policies, inflation,
supply chain disruptions and other risks of the mining industry.
Although the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward‐looking information, there may be other
factors that cause results not to be as anticipated, estimated, or
intended. Readers are cautioned not to place undue reliance on such
information. Additional information regarding the factors that may
cause actual results to differ materially from this forward‐looking
information is available in Americas’ filings with the Canadian
Securities Administrators on SEDAR+ and with the United States
Securities and Exchange Commission on EDGAR. Americas does not
undertake any obligation to update publicly or otherwise revise any
forward‐looking information whether as a result of new information,
future events or other such factors which affect this information,
except as required by law. Americas does not give any assurance (1)
that Americas will achieve its expectations, including regarding
the closing and implementation of the Acquisition, or (2)
concerning the result or timing thereof. All subsequent written and
oral forward‐looking information concerning Americas are expressly
qualified in their entirety by the cautionary statements above.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241030610233/en/
For more information: Stefan Axell VP, Corporate
Development & Communications Americas Gold and Silver
Corporation 416‐874‐1708 Darren Blasutti President and CEO Americas
Gold and Silver Corporation 416‐848‐9503
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