Silver Elephant Mining Corp. (“Silver Elephant” or the “Company”) (TSX:ELEF) (OTCQX:SILEF) (Frankfurt:1P2N) is pleased to provide the following update further to its news release dated November 30, 2021 with respect to previously completed private placement (the “Flying Nickel Offering”) of flow-through subscription receipts of Silver Elephant’s wholly owned Flying Nickel Mining Corp. (“Flying Nickel”).
Gross proceeds of $1,534,176 were released from escrow to Flying Nickel upon converting an aggregate of 1,992,437 flow-through subscription receipts of Flying Nickel into 1,992,437 flow-through common shares of Flying Nickel at a price of $0.77 per share (the “Conversion”), pursuant to the subscription receipt agreement between Flying Nickel, Computershare Trust Company of Canada and Red Cloud Securities Inc.
In addition, the Company further confirms that proceeds of $7,065,823 from the issuance of 10,094,033 non-flow-through subscription receipts of Flying Nickel remain subject to escrow and will be released to Flying Nickel upon satisfaction of certain additional escrow release conditions, including receipt of final approval of the Supreme Court of British Columbia (court date scheduled for January 11, 2022), in connection with the Company’s previously announced plan of arrangement.
In connection with the Conversion, an aggregate of 119,546 broker warrants were issued to the agents for the Flying Nickel Offering. Each broker warrant entitles the holder to acquire one common share of Flying Nickel at an exercise price of $0.70 per common share until November 29, 2023.
For further information regarding the plan of arrangement, shareholders should review the Company’s prior news release and management information circular available at www.sedar.com and at www.silverelef.com.
The Company also announces that further to its press release dated February 9, 2021 and pursuant to the asset purchase agreement (the “APA”) dated January 21, 2021 between the Company and Victory Nickel Inc. (“VN”), the Company issued 4,607,180 common shares in the capital of the Company (“Shares”) at a deemed price per Share of $0.277914 to VN on December 30, 2021 in satisfaction of the Company’s obligation to issue US$1,000,000 in Shares to VN by no later than December 31, 2021.
The Company further confirms that pursuant to the APA, 10,081,502 Shares at a deemed price per Share of $0.2503 were issued to VN on August 31, 2021, in satisfaction of the Company’s obligation to issue US$2,000,000 in Shares by no later than August 31, 2021.
There are no further payments to VN under the APA unless the price of nickel exceeds US$10 per pound for 30 consecutive business days before December 31, 2023, upon which Silver Elephant will issue VN an additional $2,000,000 in Silver Elephant common shares.
About Silver Elephant
Silver Elephant Mining Corp. is a premier mining and exploration company in silver, nickel, and vanadium.
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