Risk54, handsdo, Mediascience, MC2Atlantis
News release:
"Not for distribution to U.S. news wire services or dissemination in the United States."
"Silver Elephant Announces Filing of Technical Report for Pulacayo Project and Final Short-Form Prospectus for Previously Announced $8.0 Million Bought Deal OfferingVancouver, British Columbia, November 17, 2020 – Silver Elephant Mining Corp. ("Silver Elephant" or the "Company") (TSX:ELEF, OTCQX:SILEF, Frankfurt:1P2N) is pleased to announce that, further to its press releases dated October 13, 2020, October 20, 2020, October 21, 2020, and October 27, 2020, it has filed its independent amended technical report with a report date of November 12, 2020 and an effective date of October 13, 2020, titled "Mineral Resource Estimate Technical Report for the Pulacayo Project" (the"Report"). The Report was prepared by Mercator Geological Services Limited on the Company’s Pulacayo project and has been filed under the Company’s profile on the System for Electronic Document Analysis and Retrieval at www.sedar.com.
The Company has also filed a final short form prospectus with the securities commissions in each of the provinces of Canada, other than Québec, in connection with its previously announced bought deal offering (the "Offering") of 20,000,000 common shares of the Company (the "Offered Shares") at a price of C$0.40 per share for aggregate gross proceeds of $8.0 million through a syndicate of underwriters led by Mackie Research Capital Corporation and including Canaccord Genuity Corp. and Sprott Capital Partners LP (together, the "Underwriters").
The Company has also granted the Underwriters the option, exercisable in whole or in part from time to time at any time on or prior to the date that is 30 days following the closing date of the Offering to acquire up to an additional 3,000,000 common shares of the Company (representing an additional 15% of the Offered Shares) at a price of C$0.40 per share.
Closing of the Offering is expected to occur on November 24, 2020, or such other date as may be agreed by the Company and the Underwriters, acting reasonably.
The Toronto Stock Exchange has conditionally approved the Offering and the listing of the Offered Shares, subject to customary conditions.Insider Participation.
It is anticipated that John Lee, a director and officer of the Company, will purchase 750,000 Offered Shares pursuant to the Offering. As a result of the participation of Mr. Lee in the Offering, the Offering constitutes a "related party transaction" under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101").
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Here is the "Conclusion" of the Technical Report.
From SEDAR Filings;
MINERAL RESOURCE ESTIMATETECHNICAL REPORTfor the PULACAYO PROJECT
Page 24
(Snip) ...
"Interpretations and Conclusions Based on results of the current mineral resource estimation program documented in this report, Mercator has concluded that detailed economic assessment studies are warranted to assess the economic viability of a combined open pit mining scenario for the Pulacayo and Paca deposits with the possibility of related underground mining opportunities. Good potential exists for mineral resource extensions at both the Pulacayo and Paca deposits and new prospect evaluations are also warranted within the exploration holding. The current mineral resource estimate represents a 226% increase in total sulphide contained silver equivalent from the previous mineral resource estimate reported by Cullen and Webster (2017) and includes definition of new oxide mineral resources. This substantial increase in total contained metal reflects the transition from a low tonnage high grade assessment approach or concept used in 2017 to the low grade open pit mining concept of the current mineral resource estimate."
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Upside is a 226% increase in Pulacayo silver reserves, a positive on the balance sheet. Open pit operations would cost less and make it more attractive to start up operations or to potential purchasers.
The share offering; If fully subscribed it will result in $8,000,000 CND. Offset that against 23,000,000 share dilution for current shareholders.
I do not know specifics of the offering. Generally there is a required hold period before subscription shares can be sold. In the U.S. insider sales are generally restricted to certain periods of time, usually about once a quarter. I do not know how this would be handled under Canadian law. I do not have a large number of shrare but I am not selling at this time.
(Everyone should do their own Due Diligence when deciding to invest.)
AI
