TORONTO, March 15, 2021 (TSX: SRHI) - SRHI Inc. ("SRHI" or the "Company" - formerly Sprott Resource Holdings Inc.) announced today that it has entered into an agreement with PI Financial Corp. and Eight Capital as co-lead underwriters and joint bookrunners (together, the “Co-Lead Underwriters”) on their own behalf and on behalf of a syndicate of underwriters (together with the Co-Lead Underwriters, the “Underwriters”), under which the Underwriters have agreed to buy on a bought deal basis 18,200,000 units (the “Units”) of the Company, at a price of C$0.55 per Unit for gross proceeds of approximately C$10,010,000 (the “Offering”). Each Unit consists of one common share in the capital of the Company (each a “Unit Share”) and one common share purchase warrant (each a “Warrant”). Each Warrant is exercisable into one common share of the Company (each a “Warrant Share”) at an exercise price of C$0.70 for a period of 18 months from the closing of the Offering.
The Company has also granted the Underwriters an option, exercisable at the offering price for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the Units or the components of the Units, to cover over-allotments, if any, and for market stabilization purposes. The Offering is expected to close on April 7, 2021 and is subject to the Company receiving all necessary regulatory approvals, including the approval of the Toronto Stock Exchange.
The net proceeds from the Offering will be used to fund the advancement of the Company’s flagship Minera Tres Valles project and for working capital and general corporate purposes.
The Units will be offered by way of short form prospectus in each of the provinces of Canada (other than Quebec).
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of securities in the United States. 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 any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
About SRHI Inc.
SRHI is a publicly-listed company based in Toronto and its principal operating business is its 70% equity interest in the producing copper mine MTV in Salamanca, Chile. For more information about SRHI, please visit www.srhi.ca.
Cautionary Statement Regarding Forward-Looking Information
Certain statements in this news release contain forward-looking information (collectively referred to herein as the "Forward-Looking Statements") within the meaning of applicable Canadian securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify Forward-Looking Statements. In particular, but without limiting the foregoing, this news release contains Forward-Looking Statements pertaining to: the anticipated approvals from the TSX and TSXV on the Company’s Voluntary Delisting Application and Listing Application, the absence of interruptions or delays in the trading of securities of the Company, potential for streamlined access to capital, lower ongoing listing fees and reduced administrative burden resulting in lower operating costs for SRHI.
Although SRHI believes that the Forward-Looking Statements are reasonable, they are not guarantees of future results, performance or achievements. A number of factors or assumptions have been used to develop the Forward-Looking Statements, including: the anticipated approvals from the TSX and TSXV on the Company’s Voluntary Delisting Application and Listing Application, which approvals are not guaranteed. Although the Company believes that the expectations and assumptions on which such Forward-Looking Statements and information are based are reasonable, undue reliance should not be placed on the Forward-Looking Statements and information as the Company cannot give any assurance that they will prove to be correct. Since Forward-Looking Statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results, performance or achievements could vary materially from those expressed or implied by the Forward-Looking Statements should assumptions underlying the Forward-Looking Statements prove incorrect or should one or more risks or other factors materialize. Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Other risk factors that could affect the Company's operations or financial results are included in the Company's Annual Information Form dated March 3, 2021 and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this news release are made as of the date hereof and the Company does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While the Company may elect to, the Company is under no obligation and does not undertake to update this information at any particular time, except as required by law
For further information:
Michael Staresinic
President and Chief Financial Officer
T: (416) 943-7107
E: mstaresinic@srhi.ca
Renmark Financial Communications Inc.
Joshua Lavers: jlavers@renmarkfinancial.com
T: (416) 644-2020 or (212) 812-7680
