Silver Elephant Mining Corp. (TSX: ELEF | OTCQB: SILEF | FSE: 1P2) has announced a non-brokered private placement targeting gross proceeds of $840,000 through the issuance of 7,000,000 units priced at $0.12 each. The offering includes share purchase warrants exercisable at $0.16 per share for three years, adding potential upside exposure for participating investors. Company insiders are expected to participate, triggering related-party transaction disclosure requirements under Canadian securities rules.

Key Points

  • Silver Elephant Mining Corp. (TSX: ELEF | OTCQB: SILEF | FSE: 1P2)
  • Non-brokered private placement announced to raise $840,000 via 7,000,000 units at $0.12 per unit
  • Each unit comprises one common share plus one warrant exercisable at $0.16 for three years; insiders expected to subscribe for up to 2,000,000 units ($240,000); TSX approval required
  • Investors may be watching for Toronto Stock Exchange approval and closing of the placement

Unit Structure and Warrant Terms of the Silver Elephant Private Placement

Each of the 7,000,000 units offered under the placement consists of one common share and one share purchase warrant. The warrant entitles the holder to acquire one additional common share at $0.16 for a period of three years from the date of issuance. Finder's fees of up to 7% in finder's units are payable, with each finder's unit also carrying a non-transferable warrant exercisable at $0.16 per share for three years. All securities issued under the placement will be subject to a regulatory hold period of four months plus one day from the issue date.

Insider Participation and Related-Party Transaction Disclosures

Company insiders are expected to subscribe for up to 2,000,000 units, representing gross proceeds of up to $240,000. The release states this participation constitutes a related-party transaction under Multilateral Instrument 61-101. Silver Elephant anticipates relying on exemptions from both minority shareholder approval and formal valuation requirements under sections 5.5(a) and 5.7(1)(a) of MI 61-101, on the basis that neither the fair market value of the units issued to insiders nor the consideration paid is expected to exceed 25 percent of the company's market capitalisation.

Use of Proceeds and Silver Elephant's Current Project Portfolio

The company states that net proceeds from the placement are intended primarily for general working capital purposes. Silver Elephant is a mineral exploration company that has optioned the Robinson-Lasher zinc-germanium-gallium project in Kentucky, situated near a proposed US$7.4 billion smelter. The company also operates the Apuradita silver project in Bolivia. The private placement remains subject to approval by the Toronto Stock Exchange, and the immediate share price impact was not clear from available public information.