Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE: 1P2) has completed the first closing of its non-brokered private placement, raising gross proceeds of $840,000 through the issuance of 7,000,000 units priced at $0.12 each. The announcement, made on October 13, 2026, follows prior releases dated September 3 and September 29, 2026, signalling continued progress on the financing. Investors may be watching how the company deploys the proceeds toward general working capital needs at its mineral exploration projects.

Key Points

  • Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE: 1P2)
  • First closing of non-brokered private placement completed, raising $840,000 through 7,000,000 units at $0.12 per unit
  • Each unit includes one common share and one warrant exercisable at $0.16 for three years from issuance; insider John Lee subscribed for 1,500,000 units
  • Proceeds are expected to be used primarily for general working capital; all securities subject to a four-month-plus-one-day regulatory hold period

Unit Structure and Warrant Terms in Silver Elephant's Private Placement

Each of the 7,000,000 units issued under the offering consists of one common share and one share purchase warrant. The warrants entitle holders to acquire one additional common share at $0.16 per share at any time within three years of the issuance date. In connection with the closing, the company also issued 106,750 finder's units as compensation to certain finders. Each finder's unit mirrors the standard unit structure, comprising one share and one non-transferable warrant exercisable at $0.16 for the same three-year period.

Insider Participation and Related Party Transaction Disclosure

John Lee, CEO and Executive Chairman and an insider of Silver Elephant, subscribed for 1,500,000 units under the offering, constituting a related party transaction under Multilateral Instrument 61-101. The company states it relied on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(a) of MI 61-101, on the basis that Lee's participation did not exceed 25% of the fair market value of the company's market capitalisation. The release does not provide further detail on the dollar value of the insider's subscription beyond the unit count.

Use of Proceeds and Regulatory Hold Period at Silver Elephant

The company states that proceeds from the offering are expected to be used primarily for general working capital purposes. All securities issued under the private placement are subject to a regulatory hold period of four months plus one day from the date of issuance, in accordance with applicable Canadian securities laws. Silver Elephant operates the Robinson-Lasher zinc-germanium-gallium project in Kentucky and the Apuradita silver project in Bolivia. The immediate share price impact was not clear from available public information.