TORONTO, ON / ACCESS Newswire / August 21, 2026 / Silver Storm Mining Ltd. (“Silver Storm” or the “Company“) (TSXV:SVRS)(FSE:SVR), announces a non-brokered private placement of 15,000,000 units of the Company (the “Units“) at a price of $0.50 per Unit for gross proceeds of $7,500,000 (the “Offering“). Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him and a current significant shareholder of the Company, is subscribing for the entire Offering.
Each Unit will consist of one common share of the Company (a “Common Share“) and one-half of one common share purchase warrant. Each whole warrant (a “Warrant“) will entitle the holder to acquire one additional Common Share at a price of $0.70 for a period of 18 months from the closing of the Offering.
No commissions or finders’ fees are payable by the Company in connection with the Offering.
The Company intends to use the net proceeds of the Offering to fund surface and underground drilling programs at its La Parrilla Silver Mine Complex (“La Parrilla“), and for general corporate and working capital purposes.
Greg McKenzie, President & CEO, stated: “We are pleased to have Eric Sprott, one of the most respected resource investors in the world, fund this private placement. He has supported Silver Storm over the past several years, and his continued confidence underscores the progress we have made bringing La Parrilla back into production.”
The Offering is being made to Mr. Sprott, through 2176423 Ontario Ltd., an accredited investor, in reliance on the accredited investor exemption available under National Instrument 45-106 – Prospectus Exemptions. The securities issued pursuant to the Offering will be subject to a four month and one day hold period from the date of issuance.
The Offering is expected to close on or about August 25, 2026, or such other date(s) as the Company may determine (the “Closing Date“). Completion of the Offering is subject to certain conditions, including receipt of all necessary approvals, including the approval of the TSX Venture Exchange (the “TSXV“).
Related Party Transaction
Eric Sprott, through 2176423 Ontario Ltd., a corporation beneficially owned by him, currently holds 95,768,929 common shares of the Company, representing approximately 11.6% of the Company’s issued and outstanding common shares. Mr. Sprott, through 2176423 Ontario Ltd., is committing to subscribe for 15,000,000 Units in the Offering for an aggregate purchase price of $7,500,000 (the “Insider Participation”). The Insider Participation will be considered a “related party transaction” within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101“). The Company expects to rely on exemptions from the formal valuation and minority shareholder approval requirements provided under MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a), respectively, on the basis that neither the fair market value of the Units issued to Mr. Sprott, nor the fair market value of the consideration paid by him, exceeds 25% of the Company’s market capitalization. The Company did not file a material change report in respect of the Insider Participation at least 21 days before expected closing date of the Offering, as the Insider Participation was not confirmed prior to the foregoing period.