Pinehurst Capital I Inc., a capital pool company listed on the TSX Venture Exchange (“TSXV”), on August 27, 2020 announced details of its proposed arm’s length qualifying transaction with Silver Bullet Mines Inc. (“Silver Bullet”), a mining company focused on silver exploration with its primary asset being the Black Diamond Property (the “Property”) located near Globe, Arizona.
Pinehurst entered into a letter of intent with Silver Bullet dated August 26, 2020 (the “Letter of Intent”) pursuant to which Pinehurst and Silver Bullet have agreed to complete a business combination (the “Transaction”) whereby Pinehurst will be the parent company (the “Resulting Issuer”) and 100% of the issued and outstanding of securities of Silver Bullet will be owned by the Corporation. Silver Bullet and Pinehurst have agreed to extend the expiry of the Letter of Intent to October 9, 2020.
Silver Bullet owns a 100% interest in the Property which consists of 232 mineral claims (4900 acres), centred on the Richmond Basin, 91 km west of Phoenix, Arizona. The Property includes several past producing silver mines including the McMorris, La Plata and Buckeye.
Silver Bullet has advised Pinehurst that the next stage of exploration has begun on the Property, including the evaluation of drill targets within Silver Bullet’s strict exploration criteria with mapping and an expansion of the soil sampling program. This initial work will also include work on the Buckeye Mine site to further determine the controls on mineralization and to explore for additional high-grade mineralization.
Summary of the Proposed Financing
The Letter of Intent contemplates that Silver Bullet will complete a non-brokered private placement (the “Silver Bullet Private Placement”) of aggregate proceeds of not less than C$3,000,000 by the issuance of Units at a price of thirty cents (C$0.30) per Unit. Each Unit will consist of one common share and one-half of one common share purchase warrant, with each whole warrant being exercisable for one common share at an exercise price of fifty cents (C$0.50) for a two-year term. Silver Bullet may engage an agent (the “Agent”) to act on a “commercially reasonable efforts” basis for the Silver Bullet Private Placement and in connection therewith may pay a commission to the Agent in an amount to be determined. The proceeds of the Silver Bullet Private Placement will be used to fund the recommended exploration program on the Property, continuing operating expenses, and for general working capital purposes.
Additional Information and Description of Significant Conditions to Closing
Completion of the Transaction is subject to a number of conditions, including but not limited to, approval by the TSXV. Other conditions include completion of the Silver Bullet Private Placement, satisfactory completion of due diligence reviews by Silver Bullet and Pinehurst, execution of a definitive agreement, board of directors’ approval of Pinehurst and Silver Bullet, certain shareholder approvals and certain other usual conditions. Trading of Pinehurst’s Common Shares will not resume until all documents required by the TSXV have been filed. This press release was drafted under the supervision of Ronald Wortel, P.Eng, who is the Qualified Person in accordance with NI43-101.
For further information, please contact:
Pinehurst Capital I Inc., CEO
Peter M. Clausi
Silver Bullet Mines Inc., VP Capital Markets