Silver Viper Closes $4 Million Private Placement and Appoints Investor Relations Firm
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Vancouver, BC – Silver Viper Minerals Corp. – (TSXV: VIPR) (“Silver Viper” or the “Company”) is pleased to announce that it has closed a private placement financing (the “Offering”) to raise gross proceeds of $4.0 million from the sale of 16,000,000 units at a price of $0.25 per unit (“Units”). Each Unit consists of one common share of the Company (each a “Common Share”) and one-half of one share purchase warrant (each, a “Warrant”), with each whole warrant entitling the holder thereof to purchase one Common Share at a price of $0.35 per share for a period of two years.
Silver Viper intends to use the net proceeds of the Offering to continue exploration and development of its La Virginia gold-silver project located in Sonora, Mexico and for general corporate and working capital purposes.
All securities issued pursuant to the Offering are subject to a four month hold period which will expire on January 25, 2020. The Company will have 58,810,301 Common Shares and 8,000,000 Warrants outstanding after the close of the Offering.
The Company has agreed to pay a finder’s fee in respect of those purchasers under the Offering introduced to the Company by Red Cloud Securities, Eventus Capital Corp., Echelon Wealth Partners, Canaccord Genuity, Haywood Securities Inc., and Blue Lakes Advisors SA (each a “Finder” and collectively, the “Finders”). Each Finder was paid a cash payment equal to 6% of the gross proceeds received by the Company from purchasers under the Offering who were introduced to the Company by such Finder, with a total of $127,424 paid by the Company to the Finders.
The issuance of Units to insiders pursuant to the Offering is considered to be a related party transaction under Multilateral Instrument 61-101. The Company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(a) of Multilateral Instrument 61-101 on the basis that participation in the Offering by insiders does not exceed 25% of the fair market value of the Company’s market capitalization.
The Units have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States or to U.S. Persons absent registration or an applicable exemption from registration. This press release is not an offer or a solicitation of an offer of securities for sale in the United States, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Company also announces that it has entered into an agreement for Red Cloud Financial Services Inc. (“Red Cloud FS”) to provide certain investor relations services to the Company, including assisting with increasing investor awareness and overall marking of the Company. Headquartered in Toronto, Ontario, Red Cloud FS is a globally oriented resource focused financial services platform, offering clients an extensive array of corporate access services including advisory, marketing and media. The agreement with Red Cloud FS is for an initial period of six months at a cost of $10,000 per month. Red Cloud FS does not currently have any direct or indirect interest in the Company or its securities.
About the Company
Silver Viper Minerals Inc is a Canadian-based junior mineral exploration company focused on precious metals exploration in the northwestern Mexican state of Sonora. The Company currently operates the La Virginia Gold-Silver Project. Silver Viper has 100% ownership of the La Virginia concessions acquired from PAAS and an option to acquire a 100% interest in the Rubi-Esperanza group of claims internal to those concessions. The property is an early stage exploration property, targeting a series of laterally extensive intrusive dykes and breccia zones, hosting low-sulphidation epithermal gold-silver mineralization. Silver Viper is under management provided by Belcarra Group Management Ltd. which is comprised of highly qualified mining professionals.
On behalf of the board of directors,
Steve Cope
President and CEO
For Further Information please contact Silver Viper Minerals Corp. at (604) 687-8566 X228, email info@silverviperminerals.com or visit our website at www.silverviperminerals.com
Forward Looking Information
Information set forth in this press release contains forward-looking statements. These statements reflect management’s current estimates, beliefs, intentions and expectations; they are not guarantees of future performance. The Company cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond the Company’s control. Such factors include, among other things: risks and uncertainties relating to exploration and development, the ability of the Company to obtain additional financing, the need to comply with environmental and governmental regulations, fluctuations in the prices of commodities, operating hazards and risks, competition and other risks and uncertainties, including those described in the Company’s financial statements available on www.sedar.com. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information.
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 RELEASE.