As previously announced, Mr. Eric Sprott and a fund managed by Jupiter Asset Management (the "Jupiter Fund"), Apollo Silver's two largest shareholders, are participating in the Upsized Offering, and will each subscribe for 2,500,000 Units of the Company, for combined gross proceeds of $25,000,000. Following completion of the Upsized Offering, the Jupiter Fund will own approximately 12% of Apollo Silver's issued and outstanding common shares, while Eric Sprott will own approximately 9.5%, on an undiluted basis. On a partially diluted basis, each investor's ownership interest will increase accordingly.
Each Unit issued pursuant to the Upsized Offering will consist of one common share (a "Share") in the capital of the Company and one common Share purchase warrant (a "Warrant"). Each Warrant entitles the holder thereof to purchase one Share at an exercise price of $7.00 for 24 months from the closing date of the Upsized Offering.
All securities issued in connection with the Upsized Offering will be subject to a four-month hold period from the date of closing. Finder's fees may be payable on some or all of the funds raised, in accordance with the policies of the TSX Venture Exchange (the "TSXV"). The Company intends to use the net proceeds from the Upsized Offering to fund exploration and development activities across the Company's projects, as well as for general working capital and corporate purposes.
Closing of the Upsized Offering is subject to regulatory approval, including that of the TSXV.
The Upsized Offering is expected to include participation by certain insiders of the Company for an aggregate amount of up to $2,500,000. Such participation constitutes a "related party transaction" under Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The issuance of securities to insiders will be exempt from the valuation requirement pursuant to section ...
