Americas Gold and Silver completes private placement of subscription receipts

On October 30, 2024, Americas Gold and Silver Corporation (“Americas”) announced that it completed its previously announced “bought deal” private placement of subscription receipts, in which it issued an aggregate of 125,000,000 subscription receipts (including 12,500,000 subscription receipts issued pursuant to the exercise, in full, of an underwriters' option granted to the underwriters) at an issue price of C$0.40 per subscription receipt, for gross proceeds of C$50 million.

The private placement was co-led by Cormark Securities Inc. (“Cormark”) and TD Securities Inc., on behalf of a syndicate of underwriters including Desjardins Securities Inc., Haywood Securities Inc., Canaccord Genuity Corp., and Eight Capital.

Each subscription receipt represents the right of the holder to receive one common share of Americas upon satisfaction of certain escrow release conditions, including the satisfaction or waiver of all conditions precedent to the completion of Americas’ previously announced indirect acquisition of the remaining 40% interest in the Galena Complex in Idaho, USA, under a purchase agreement between Americas, an affiliate of Eric Sprott (“Sprott”) and Paul Andre Huet, as seller representative.

The proceeds from the private placement are being held in escrow pending the closing of the acquisition. Following release of the proceeds, Americas intends to use the net proceeds for growth initiatives at the Galena Complex, the payment of cash consideration to Sprott in accordance with the purchase agreement, the repayment of certain of Americas’ existing indebtedness, the payment of transaction expenses and for working capital and general corporate purposes.

Further information can be found on Business Wire’s website.

Americas Gold and Silver is a high‐growth precious metals mining company with multiple assets in North America. It owns and operates the Cosalá Operations in Sinaloa, Mexico, manages the 60%‐owned Galena Complex in Idaho, USA, and is re‐evaluating the Relief Canyon mine in Nevada, USA. It also owns the San Felipe development project in Sonora, Mexico.