Magma Silver Announces Closing of $5 Million Private Placement

Core Viewpoint - Magma Silver Corp. has successfully closed a non-brokered private placement, raising gross proceeds of $5,000,000 through the issuance of 33,333,332 units at a price of $0.15 per unit [1][2]. Group 1: Offering Details - Each unit consists of one common share and one-half of a common share purchase warrant, with each whole warrant allowing the purchase of one common share at an exercise price of $0.25 for 36 months [2]. - The company intends to use the net proceeds from the offering for exploration at the Niñobamba silver-gold project in Peru, working capital, and general corporate purposes [6]. - The company paid aggregate cash finder's fees of $294,022 and issued 1,928,138 finder warrants, each allowing the purchase of one common share at $0.25 for 36 months [7]. Group 2: Insider Participation - Eric Sprott, through 2176423 Ontario Ltd., acquired 6,666,667 units for a total consideration of $1,000,000, representing approximately 9.5% of the outstanding common shares on a non-diluted basis and 13.6% on a partially-diluted basis [3][4]. - The issuance of 100,067 units to directors, officers, and insiders for gross proceeds of $15,010 constituted related party transactions, exempt from formal valuation and minority shareholder approval [9]. Group 3: Equity Incentive Awards - The board of directors approved the grant of 3,525,000 incentive stock options to certain directors, officers, consultants, and employees, exercisable into common shares at $0.25 per share for five years [10]. - The stock options will vest in four equal tranches every three months, starting three months from the grant date [10]. Group 4: Company Overview - Magma Silver Corp. focuses on acquiring, exploring, developing, and operating precious metal mining projects, with a primary focus on the Niñobamba silver-gold project in Peru [13]. - The Niñobamba project spans an 8 km mineralized corridor in a high-sulphidation epithermal system, with over C$14.5 million invested to date by various companies [13]. - The company is advancing the Niñobamba project using modern geological modeling and has strong relationships with local communities and a regional technical team with over 50 years of mining experience in Peru [13].