TORONTO, May 5, 2020 /PRNewswire/ - Americas Gold and
Silver Corporation ("the "Company") (TSX:USA; NYSE American: USAS)
has today entered into an agreement with a syndicate of
underwriters (collectively, the "Underwriters") pursuant to which
the Underwriters have agreed to purchase on a bought deal basis
8,930,000 common shares of the Company (the "Common Shares")
at a price of C$2.80 per Common Share
(the "Offering Price"), for aggregate gross proceeds of
approximately C$25,000,000 (the
"Offering").
The Company has also granted an option to the Underwriters,
exercisable until 11:59 p.m. on the
30th day following the closing date of the Offering, to
purchase from the Company such number of additional common shares
of the Company as is equal to 15% of the number of common shares of
the Company at the Offering Price for market stabilization purposes
and to cover over-allotments, if any.
Strategic investors led by Pierre
Lassonde and Eric Sprott have
indicated that they intend to subscribe for such number of common
shares from the offering totalling C$8.75
million.
The proceeds from the sale of the Common Shares will be used for
working capital and general corporate purposes, which may include
the exploration, development and/or improvement of the Company's
existing mine properties, including those relating to bringing
Relief Canyon into commercial production.
The Offering will be made by way of a prospectus supplement (the
"Prospectus Supplement") to the Company's base shelf prospectus
dated June 28, 2019. The Prospectus
Supplement will be filed in Alberta, British
Columbia and Ontario and,
together with the related Base Shelf Prospectus, will be available
on SEDAR at www.sedar.com.
Closing of the Offering is expected to take place on or about
May 13, 2020 and is subject to the
receipt of approvals of the Toronto Stock Exchange and the NYSE
American LLC and other necessary regulatory approvals.
The securities to be offered have not been and will not be
registered under the United States Securities Act of 1933, as
amended (the "U.S. Securities Act"), or under any U.S. state
securities laws, and may not be offered, sold, directly or
indirectly, or delivered within the
"United States" or to, or for the account or benefit of,
persons in the "United States" or
"U.S. persons" (as such terms are defined in Regulation S under the
U.S. Securities Act) except in certain transactions exempt from the
registration requirements of the U.S. Securities Act and all
applicable U.S. state securities laws. This release does not
constitute an offer to sell or a solicitation of an offer to buy
such securities in the United
States, Canada or in any
other jurisdiction where such offer, solicitation or sale is
unlawful.
Forward-Looking Statements
This press release contains certain statements that constitute
forward-looking information within the meaning of applicable
securities laws ("forward-looking statements"), which reflects
management's expectations regarding the Company's future growth and
business prospects and opportunities. Forward-looking statements
include, without limitation, all disclosure regarding closing of
the Offering, the anticipated use of proceeds of the Offering, and
possible events, conditions or results of operations, future
economic conditions expectations and anticipated courses of action.
Although the forward-looking statements contained in this press
release reflect management's current beliefs based upon information
currently available to management and based upon what management
believes to be reasonable assumptions, such forward-looking
statements are based upon assumptions, opinions and analysis that
management believes to be reasonable and relevant but that may
prove to be incorrect. The Company cautions you not to place undue
reliance upon any such forward-looking statements.
The risks and uncertainties that may affect forward-looking
statements include, among others: the inherent risks involved in
exploration and development of mineral properties, including
government approvals and permitting, changes in economic
conditions, state of the financial markets, changes in the
worldwide price of gold and other key inputs, changes in mine plans
and other factors, the impact of the novel coronavirus (COVID-19),
such as project execution delays, many of which are beyond the
control of the Company, as well as other risks and uncertainties
which are more fully described in the Company's Annual Information
Form dated March 9, 2020 and in other
filings of the Company with securities and regulatory authorities
which are available on SEDAR at www.sedar.com. The Company does not
undertake any obligation to update forward-looking statements
should assumptions related to these plans, estimates, projections,
beliefs and opinions change. Nothing in this document should be
construed as either an offer to sell or a solicitation to buy or
sell the Company securities. All references to the Company include
its subsidiaries unless the context requires otherwise.
About Americas Gold and Silver Corporation
Americas Gold and Silver Corporation is a high‐growth precious
metals mining company with multiple assets in North America. The Company's newest asset,
Relief Canyon in Nevada, USA, has
poured first gold and is expected to ramp up to full production
over the course of 2020. The Company also owns and operates the
Cosalá Operations in Sinaloa,
Mexico and manages the 60%‐owned Galena Complex in
Idaho, USA. The Company also holds
an option on the San Felipe
development project in Sonora,
Mexico. For further information, please see SEDAR or
www.americas‐gold.com.
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SOURCE Americas Gold and Silver Corporation
