Over-Allotment Option Exercised in Full
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES.
U.S. Silver Corporation (TSXV: USA/USA.WT) (“U.S. Silver” or the “Company”)
announced today that it has closed its previously announced underwritten
public offering for gross proceeds of $4,600,115, including the full
exercise of the Underwriters’ over-allotment option (the “Offering”).
A total of 35,385,500 units were issued at a price of $0.13, with each
unit (a “Unit”) comprising one common share (a “Common Share”)
and one-half of a common share purchase warrant (each whole common share
purchase warrant is referred to herein as a “Warrant”). Each
Warrant entitles the holder to purchase one Common Share at a price of
$0.155 per share until July 16, 2014. The Units were also offered in the
United States on a private placement basis.
The Common Shares and the Warrants will trade separately on the TSX
Venture Exchange. The Common Shares continue to trade under the symbol “USA”
and, subject to fulfilling the requirements of the TSX Venture Exchange,
the Warrants will begin trading on July 20, 2009 under the symbol “USA.WT”.
The Offering was led by Cormark Securities Inc. with a syndicate of
underwriters including Research Capital Corporation and MGI Securities
Inc. (the “Underwriters”).
U.S. Silver intends to use the net proceeds of the Offering for the
rehabilitation of the Galena Mine shaft, mine infrastructure, as well as
for capital expenditures and exploration.
As consideration for their participation in the Offering, the
Underwriters received a cash commission equal to 5% of the total
proceeds raised. In addition, the Company issued warrants to the
Underwriters (the “Underwriters’ Warrants”) exercisable to
acquire that number of Units as is equal to 5% of the aggregate number
of Units issued pursuant to the Offering. Each Underwriters’ Warrant
entitles the holder thereof to acquire one Unit for $0.16 for a period
of 24 months following the closing of the Offering.
ABOUT U.S. SILVER CORPORATION
U.S. Silver, through its wholly-owned subsidiaries, owns and operates
the Galena, and owns the Coeur, Caladay and Dayrock, silver-lead-copper
mines in Shoshone County, Idaho, with the Galena mine being the second
most prolific silver mine in US history. Total silver production from
U.S. Silver's mining complex has exceeded 216 million ounces of silver
production since 1953. U.S. Silver controls a land package now totaling
approximately 18,000 acres in the heart of the Coeur d'Alene Mining
District. U.S. Silver is focused on expanding the production from
existing operations as well as exploring and developing its extensive
Silver Valley holdings in the Coeur D'Alene Mining District.
Neither TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain
forward-looking statements. This information is based on current
expectations that are subject to significant risks, assumptions and
uncertainties that are difficult to predict, including the risk that the
net proceeds may not be sufficient for the purposes stated in the
prospectus and the risk that regulatory approvals may not be obtained
within the timeframe contemplated. Actual results might differ
materially from results suggested in any forward-looking statements. The
Company assumes no obligation to update the forward-looking statements,
or to update the reasons why actual results could differ from those
reflected in the forward looking-statements unless and until required by
securities laws applicable to the Company. Additional information
identifying risks and uncertainties is contained in filings by the
Company with the Canadian securities regulators, which filings are
available at www.sedar.com.
U.S. Silver Corporation
Tom Parker, President and CEO,
(208) 752-0400
