/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Feb. 7, 2025
/CNW/ - AbraSilver Resource Corp. (TSXV: ABRA)
("AbraSilver" or the "Company") is pleased to
announce the successful closing of its previously announced bought
deal public offering (the "Offering") of 11,765,650 common
shares of the Company (the "Common Shares") at a price of
$2.55 per Common Share (the "Issue
Price") for aggregate gross proceeds of $30,002,407.50. This total includes the full
exercise of the over-allotment option.
The Offering was completed pursuant to an underwriting agreement
dated February 4, 2025 (the
"Underwriting Agreement") entered into among the Company and
a syndicate of underwriters, led by National Bank Financial Inc.
and Beacon Securities Limited, acting as co-bookrunners, and
including Raymond James Ltd., Scotia Capital Inc. and TD Securities
Inc. (collectively, the "Underwriters"). In connection with
the Offering, the Company paid the Underwriters a cash commission
equal to 6.0% of the aggregate gross proceeds raised.
Net proceeds from the Offering will be used to fund the
continued advancement of the 100%-owned Diablillos silver-gold
project in the Salta province of Argentina, as well as for general corporate
purposes.
In addition to and concurrent with the Offering, the Company
intends to complete its previously announced private placement (the
"Concurrent Private Placement") of up to 11,193,565 Common
Shares in connection with the exercise of participation rights held
by an affiliate of Central Puerto S.A. ("Central Puerto")
and Kinross Gold Corporation ("Kinross"), at the Issue Price, for
aggregate gross proceeds of up to $28,543,590.75. In connection with the Concurrent
Private Placement, the Company may pay an arm's length finder a
cash commission of up to 3.0% of the proceeds raised from Central
Puerto. The Common Shares sold pursuant to the Concurrent Private
Placement will be subject to a hold period of four months plus one
day from the closing date of the Concurrent Private Placement. The
closing of the Concurrent Private Placement is expected to occur on
or about February 11, 2025 and is
subject to the Company receiving all necessary approvals, including
the conditional approval from the TSX Venture Exchange.
The Offering was completed in all provinces and territories of
Canada, except Quebec and Nunavut, pursuant to a prospectus supplement
(the "Supplement") dated February 4,
2025 to the Company's short form base shelf prospectus dated
April 14, 2023 (the "Base Shelf
Prospectus"), filed with the securities regulatory authorities
in each of the provinces and territories of Canada, and in the
United States on a private placement basis pursuant to an
exemption from the registration requirements of the U.S. Securities
Act of 1933, as amended (the "U.S. Securities Act") and
applicable state securities laws and other jurisdictions. Copies of
the Supplement, the Base Shelf Prospectus and the Underwriting
Agreement are available under the Company's profile on SEDAR+
at www.sedarplus.ca.
This press release is not an offer to sell or the
solicitation of an offer to buy the securities in the United States or in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
qualification or registration under the securities laws of such
jurisdiction. The securities being offered have not been, nor will
they be, registered under the U.S. Securities Act, and such
securities may not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons absent registration or an applicable
exemption from U.S. registration requirements and applicable U.S.
state securities laws.
About AbraSilver
AbraSilver is an advanced-stage exploration company focused on
rapidly advancing its 100%-owned Diablillos silver-gold project in
the mining-friendly Salta and Catamarca provinces of Argentina. The current Proven and Probable
Mineral Reserve estimate for Diablillos, consists of 42.3 Mt
grading 91 g/t Ag and 0.81 g/t Au, containing approximately 124 Moz
silver and 1.1 Moz gold, with significant further exploration
upside potential. In addition, the Company has entered into an
earn-in option and joint venture agreement with Teck on the La
Coipita project, located in the San Juan province of Argentina. AbraSilver is listed on the TSX-V
under the symbol "ABRA" and in the U.S. on the OTCQX under the
symbol "ABBRF."
For further information please visit the AbraSilver Resource
website at www.abrasilver.com, our LinkedIn page at AbraSilver
Resource Corp., and follow us on X at www.x.com/abrasilver.
Cautionary Note Regarding Forward-Looking
Information
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation, including in
respect of the Offering, the Concurrent Private Placement, the
expected closing date of the Concurrent Private Placement and the
use of net proceeds thereof. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties, and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. All statements that
address future plans, activities, events or developments that the
Company believes, expects or anticipates will or may occur are
forward-looking information. There can be no assurance that such
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements. When considering this forward-looking
information, readers should keep in mind the risk factors and other
cautionary statements in the Company's disclosure documents filed
with the applicable Canadian securities regulatory authorities on
SEDAR+ at www.sedarplus.ca. The risk factors and other factors
noted in the disclosure documents could cause actual events or
results to differ materially from those described in any
forward-looking information. The Company disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Neither the 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 news release.
SOURCE AbraSilver Resource Corp.
