Silver Elephant Mining Corp. (TSX: ELEF) (OTCQX: SILEF) (FSE: 1P2) (‘Silver Elephant’ or ‘the Company’) announces that it proposes to undertake a non-brokered private placement (the ‘Placement’) of up to 1.5 million Units of the Company (the ‘Units’) at a price of $0.45 per Unit to raise aggregate gross proceeds of up to $675,000.
Each Unit will consist of one common share of the Company and one share purchase warrant with each warrant entitling the holder to purchase one additional share of the Company at a price of $0.55 per share for 3 years.
The securities issued as part of the Placement will be subject to a hold period of four months plus one day from the date of issue.
Closing of the Placement is expected to occur on or about April 5, 2023.
John Lee, Executive Chairman will be subscribing for up to 310,000 Units for gross proceeds of up to $139,500. The issuance of Units to insiders pursuant to the Placement will be considered related party transactions within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (‘MI 61-101’). The Company relies on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of MI 61-101 on the basis that participation in the Placement by insiders will not exceed 25% of the fair market value of the Company’s market capitalization. The Company will file a material change report in respect of the related party transactions in connection with the Placement. The Placement is subject to approval by the Toronto Stock Exchange (‘TSX’).
A Finder’s Fees of 7% Finder’s Units will be payable in connection with the Placement in accordance with the policies of the TSX. Each Finder’s Unit will consist of one common share of the Company and one non-transferable share purchase warrant with each warrant entitling the holder to purchase one additional share of the Company at a price of $0.55 per share for 3 years.
Proceeds of the Placement are expected to be used for exploration, working capital and general corporate purposes.
About Silver Elephant Mining Corp.
Silver Elephant Mining Corp. is a premier silver mining and exploration company, with its flagship Pulacayo silver project in Bolivia. It also owns 100% of Mega Thermal Coal Corp and 39% of Oracle Commodity Holding Corp. (‘Oracle’). Oracle has equity and royalty investments in nickel and vanadium mining companies.
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