Mr. John Lee of Silver Elephant reports
SILVER ELEPHANT MINING CORP. FILES EARLY WARNING REPORT IN RESPECT OF VICTORY NICKEL INC.
Silver Elephant Mining Corp. has filed an early warning report under National Instrument 62-103, The Early Warning System And Related Take-Over Bid And Insider Reporting Issues, in connection with its acquisition of 40 million common shares of Victory Nickel Inc.
On Jan. 21, 2021, Silver Elephant and Victory Nickel entered into an asset purchase agreement whereby, among other things, Silver Elephant agreed to subscribe for and purchase, on a private placement basis, 40 million shares at a deemed price of 2.5 cents per share for aggregate consideration of $1-million concurrent with the closing of the asset purchase under the APA, all of which occurred on Feb. 8, 2021.
Immediately prior to the acquisition, Silver Elephant held no securities in Victory Nickel. Immediately following the acquisition, Silver Elephant held 40 million shares which represents approximately 29 per cent of the issued and outstanding shares on a non-diluted basis. All 40 million shares are held directly by Silver Elephant and no joint actor of Silver Elephant holds any securities of Victory Nickel.
Silver Elephant acquired shares for investment purposes. Silver Elephant intends to evaluate its investment in Victory Nickel and to increase or decrease its shareholdings from time to time as it may deem appropriate.
Silver Elephant and Victory Nickel have entered into a voting trust agreement in respect of the shares acquired by Silver Elephant whereby Silver Elephant has agreed it shall either vote the shares held by Silver Elephant in accordance with the direction of Victory Nickel or shall abstain from voting such shares.
An early warning report will be filed by Silver Elephant in accordance with applicable securities laws and will be available on SEDAR under the Victory Nickel's profile or may be obtained directly from the Silver Elephant upon request. The head office of Victory Nickel is located at 80 Richmond St. West, suite 1802, Toronto, Ont., M5H 2A4, and the shares are traded on the Canadian Securities Exchange. The head office of Silver Elephant is located at Suite 1610-409 Granville St., Vancouver, B.C., V6C 1T2. There are no joint actors in connection with the acquisition.
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