Mr. N. Eric Fier reports
NATIONAL BANK FINANCIAL PURPORTS TO TERMINATE BOUGHT DEAL FINANCING WITH SILVERCREST METALS INC.
Silvercrest Metals Inc. has received notice from National Bank Financial Inc. (NBF) purporting to terminate its obligations pursuant to an agreement dated March 11, 2020, whereby NBF had asked for and agreed to purchase on a bought-deal basis 9.1 million common shares at price of $8.25 per common share. The bought-deal financing was announced by Silvercrest on March 11, 2020. NBF advised Silvercrest that the reason for the purported termination was based on the "disaster out" clause of the agreement.
The agreement between Silvercrest and NBF created a binding legal obligation on the part of NBF to complete the transaction as is customary in Canada for bought-deal financings. Silvercrest is of the view that NBF is not entitled to terminate the agreement. In Silvercrest's opinion, the novel coronavirus pandemic considered by NBF as the basis for terminating this agreement was fully evident when the bought-deal financing was agreed upon with expectations that the precious metals market would respond positively to this known risk. Accordingly, Silvercrest intends to pursue its legal remedies against NBF for breach of NBF's obligations under the terms of the agreement.
About Silvercrest Metals Inc.
Silvercrest is a Canadian precious metals exploration company headquartered in Vancouver, B.C., that is focused on new discoveries, value-added acquisitions and targeting production in Mexico's historic precious metal districts. The company's current focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico. The Las Chispas project consists of 28 100-per-cent-owned mineral concessions where all of the resources are located. Silvercrest is the first company to successfully drill test the historic Las Chispas project, resulting in numerous discoveries that are being evaluated for economic viability and potential production in the future.
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