Defiance Silver Corp. (“Defiance” or “Company”), an emerging silver explorer currently advancing the San Acacio Silver Deposit in Zacatecas, Mexico, is pleased to announce that it is closing on a first tranche of $1,254,000 of a non-brokered private placement consisting of up to 7,000,000 units at a price of $0.30 per unit for gross proceeds of up to $2,100,000 (the “Offering”). Each unit consists of one common share and one common share purchase warrant. Each warrant will entitle the holder thereof to acquire an additional common share of Defiance for a period of twenty-four (24) months at an exercise price of $0.45. The securities issued under the Offering will be subject to a four month hold period in accordance with applicable Canadian securities laws. The warrants are subject to an acceleration clause such that if the closing price of the Company’s shares on the TSX Venture Exchange is at or above $0.65 per share for a period of ten consecutive trading days during the term of the warrants, the Company may accelerate the expiry date of the Warrants to not less than 30 days following the date of notice.
The funds raised in this financing will be used to advance its San Acacio Silver Deposit, currently totaling 17,961,000 silver equivalent ounces at a silver equivalent grade of 192.50 g/t Ag, contained within a zone 1.2km in length and to a depth of 175m. Use of proceeds will be used to commence a drill program and follow up on encouraging drill results to date which continue to expand the mineralization at depth and along strike, and most importantly outside the limits of the current resource. Defiance recently intercepted wide zones of mineralization returning 27 metres grading 203 g/t silver equivalent (see the Press Release dated June 8, 2017), and will be releasing results from an additional five holes shortly. Defiance’s exploration drill results are not included in the current resource.
“We are very pleased and would like thank our shareholders, insiders and management in participating and securing the funds to advance the San Acacio Silver Deposit in becoming a premier silver asset in Zacatecas, Mexico” said Roy Bonnell, CEO of Defiance Silver. “With long term drill permits in place, we can look to commence our next phase of drilling to continue to grow the resource, but also test several targets along the 900m strike extension to the southeast”
Closing of the Offering is subject to receipt of all the required regulatory approvals including the approval of the TSX Venture Exchange. The Company may pay finder’s fees in compliance with TSX Venture Exchange policies on some or all of the Offering.
A Panoramic Video on the San Acacio Deposit is available on our website, or Click Here to visit our Defiance YouTube Channel. Defiance Silver Corp. is a silver explorer and developer advancing the San Acacio Deposit, located in the historic Zacatecas Silver District of central Mexico. Defiance is managed by a team of proven mine developers with a track record of exploring and developing seven operating mines to date. Defiance’s corporate mandate is to expand San Acacio to become one of Mexico’s premier high grade wide vein silver deposits.
Mr. Bruce Winfield, P.Geo., consultant to Defiance Silver Corp, is a Qualified Person within the meaning of National Instrument 43-101, and has approved the technical information concerning the Company’s material mineral properties contained in this press release.
On behalf of Defiance Silver Corp.
President and CEO
2300 - 1177 West Hastings Street
Vancouver, BC V6E 2K3