TORONTO, ONTARIO--(Marketwired - May 20, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Americas Silver Corp. (TSX:USA)(OTCQX:USAPF) (the "Company") is pleased to announce a private placement with Eric Sprott and other strategic shareholders led by GMP Securities L.P. and Medalist Capital Ltd. The Company intends to issue up to approximately 67 million units (the "Units") at a price of C$0.30 per Unit, for gross proceeds of up to C$20 million (the "Offering").
Darren Blasutti, President and Chief Executive Officer, commented, "We are very pleased to welcome Eric Sprott and new cornerstone institutional shareholders. With an improved balance sheet and enhanced access to capital, we are now better positioned to continue improving on our cost structure, build San Rafael and deliver on our stated goal of generating value for our shareholders."
Each Unit will consist of one common share of the Company (each a "Common Share") and one quarter of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant will entitle the holder thereof to acquire one Common Share (each, a "Warrant Share") at an exercise price of C$0.39 per Warrant Share for a period of 5 years following the closing date of the Offering.
The net proceeds of the Offering are expected to be used by the Company for capital programs at the Galena Complex and San Rafael Property, debt repayment, working capital and general corporate purposes.
All securities issued in the Offering will be subject to a statutory four month hold period. Closing of the private placement is subject to negotiation and execution of definitive documentation and receipt of all regulatory approvals, including approval of the Toronto Stock Exchange. Closing of the Offering is expected to occur on or about June 9, 2016.
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. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About Americas Silver Corporation
The Company is a silver mining company focused on growth in precious metals from its existing asset base and execution of targeted accretive acquisitions. It owns and operates the Cosala Operations in Sinaloa, Mexico and the Galena Mine Complex in Idaho, USA.