South
American Silver Corp. Announces Final Closing of $16 Million
Financing
with
Asian based High Technology Groups
-South American Silver
Corp. (TSX: SAC, US OTC: SOHAF) is pleased to announce that it has closed the final tranche of $9.6
million, of its $16 million private placement Offering (the
"Offering") of 10 million Units of the Company announced 16 April
2012. The offering was priced at $1.60 per Unit, which represented a 6%
premium to the 5 day volume weighted average trading price of the Company's
common shares at the time the Toronto Stock Exchange (the "TSX")
accepted notice of the transaction.
Each Unit of the
Offering consists of one common share of the Company and one-half of one common
share purchase warrant of the Company. Each whole warrant will be exercisable
to purchase one common share of the Company until April 20, 2014 at a price of
$2.00. The warrants will not be listed for trading.
The Offering is a
strategic investment by a number of Asian based high technology investors,
materials manufacturers, and indium/gallium end users from Taiwan, Hong Kong,
Japan and Korea. The proceeds of the Offering will go toward the advancement of
the Company's Malku Khota
silver-indium-gallium project in Bolivia and the Escalones
copper-gold project in Chile and for general corporate purposes.
Greg Johnson, President
& CEO of South American Silver Corp, stated, "We are pleased with the
strong interest from these Asian based high technology manufacturers and
investors to facilitate the rapid advancement of one of the world's largest
silver, indium and gallium projects. The Malku Khota project is anticipated to become an important new,
long life, low cost, Western source of these strategic metals, which are
critical for the manufacturing of flat panel displays, LED lighting and thin
film solar panels. Bolivia is already one of the largest producers of indium
outside of mainland China, supplying material to Japan, Korea and North
America. With Malku Khota
targeted to produce 10% or more of the global indium and gallium supply, the
Company may review possible indium/gallium off-take or streaming-type
opportunities as a source of project financing during the Feasibility
process."
As compensation for
services, the Company paid an agent a cash commission and granted the agent
non-transferable compensation warrants (the "Compensation
Warrants"). Each Compensation Warrant entitles the holder to acquire
one common share and one-half of a common share purchase warrant at an exercise
price of $1.60 per Compensation Warrant until October 20, 2013.
The common shares and
warrants issued pursuant to the Offering, as well as the common shares issuable
upon exercise of the warrants, and securities issuable upon exercise of the
Compensation Warrants, are subject to a four-month restricted resale period, which
expires on September 8, 2012. The Company shall be entitled to accelerate
the exercise period of the warrants, in the event that the closing price of the
common shares of the Company trading on the TSX exceeds $2.50 for a period of
10 consecutive trading days, to an exercise period ending at least 30 days from
the date notice of such acceleration is provided to the holders of warrants.
About South American Silver Corp.
South American Silver Corp. is a growth focused
mineral exploration company creating value through the exploration and
development of the Malku Khota
(100%) project in Bolivia, one of the world's largest undeveloped
silver-indium-gallium deposits, and the large-scale Escalones
(100%) copper-gold project in Chile. The Company's shares are listed on the
Toronto Stock Exchange under the symbol "SAC" and on the US OTC
market as "SOHAF". Additional information related to South
American Silver Corp. is available at www.soamsilver.com and on SEDAR at www.sedar.com