Americas Gold and Silver has closed its previously announced bought deal financing with a syndicate of underwriters co-led by Cormark Securities Inc. and Desjardins Capital Markets (collectively, the “Underwriters”). A total of 10,269,500 common shares of the Company (the “Common Shares”), including the exercise of the over-allotment option in full by the Underwriters, were sold at a price of C$2.80 per Common Share, for aggregate gross proceeds to the Company of C$28,754,600 (the “Offering”).
The net proceeds from the sale of the Common Shares will be used for working capital and general corporate purposes, primarily 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 was made by way of a prospectus supplement dated May 7, 2020 (the “Prospectus Supplement”) to the Company’s base shelf prospectus dated June 28, 2019 (the “Base Shelf Prospectus”). The Prospectus Supplement was filed in Alberta, British Columbia and Ontario and, together with the related Base Shelf Prospectus, are available on SEDAR at www.sedar.com.
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 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.
