Blackrock Silver upsizes bought deal financing to $12 million to fund Nevada exploration

Blackrock Silver Corp. [TSXV: BRC; OTCQX: BKRRF; FSE: AHZ0] and Raymond James Ltd., as lead underwriter and sole bookrunner, on behalf of a syndicate of underwriters including Red Cloud Securities Inc., Research Capital Corp. and Ventum Financial Corp., have upsized the previously announced bought deal financing from $10,008,000 due to strong investor demand.

Under the offering, the underwriters have agreed to purchase, on a bought deal basis, 33,334,000 units of the company at a price of 36 cents per unit for gross proceeds of $12,000,240.

Each unit shall comprise one common share of the company and one-half common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at a price of 50 cents for a period of 24 months following the closing date.

The company has granted the underwriters an overallotment option, exercisable in whole or in part, at any time, and from time to time, for 30 days following the closing date, to purchase at the issue price up to such number of additional units, common shares and warrants as are equal to 15% of the number of units sold pursuant to the offering. The underwriters can elect to exercise the overallotment option to cover overallotments, if any, and for market stabilization purposes.

Net proceeds from the offering are expected to be used by the company to advance exploration and development at the company’s Tonopah West mineral project, Nevada, for working capital and for general corporate purposes.

The company intends to complete the offering pursuant to a prospectus supplement to the company’s short form base shelf prospectus dated August 4, 2023, to be filed with the securities regulatory authorities in each of the provinces and territories of Canada (except Quebec), and in the United States on a private placement basis.

The offering is expected to close on or about January 30, 2025, and is subject to market and other customary conditions.

Blackrock Silver is focused on its 100%-controlled Nevada portfolio of properties, consisting of low-sulphidation, epithermal gold and silver mineralization located along the established Northern Nevada rift in north-central Nevada and the Walker Lane trend in western Nevada.