Silver Valley Metals raises $2 million through private placement

Silver Valley Metals Corp. (TSXV: SILV) (OTCQB: SVMFF) filed documents with the TSX Venture Exchange seeking conditional approval for a non-brokered private placement to raise $2 million.

The Vancouver-based company will issue 16,666,667 units at $0.12 per unit upon exchange approval. Each unit consists of one common share and one warrant allowing the holder to purchase an additional common share at $0.25 for 24 months from the issue date.

Four company insiders will subscribe to $504,000 of the financing, constituting a related party transaction under Multilateral Instrument 61-101. The company is exempt from formal valuation and minority shareholder approval requirements as the transaction's fair market value does not exceed 25% of the company's market capitalization.

Securities issued through the financing are subject to a statutory hold period of four months and one day from the issue date.

Silver Valley plans to use proceeds to evaluate mineral opportunities, strengthen technical capabilities, broaden its shareholder base, advance its Mexi-Can Lithium-Potash Project in Mexico, and fund general working capital.

The company owns a 100% interest in the Mexi-Can Project, comprising 4,056 hectares across three mineral concessions in Zacatecas and San Luis Potosi, Mexico. The project contains an inferred mineral resource of 12.3 million tonnes of sulfate of potash and 243,000 tonnes of lithium carbonate equivalent.

Silver Valley also maintains an equity position in Silver Dollar Resources Inc., which holds the Ranger-Page silver-zinc-lead project in Idaho's Silver Valley.

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