Silver North $2.1 Million Non-Brokered Flow-Through Private Placement Fully Subscribed
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A Non-Flow Through Private Placement of up to $500, July 15, 2025 - Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) "Silver North" or the "Company") announces that the non-brokered private placement (the "FT Unit Offering") announced on June 23, 2025 has been fully subscribed and will close shortly.
As announced, the FT Unit Offering for aggregate gross proceeds of up to $2,100,000 from the sale of flow-through units of the Company (the "FT Units") is to be sold at a price of $0.21 per FT Unit. Each FT Unit will be comprised of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant") of the Company, each of which will qualify as a "flow-through share" within the meaning of subsection 66(15) of the Income Tax Act (Canada) (the "Tax Act"). Each Warrant will entitle the holder thereof to purchase one common share (a "Warrant Share") of the Company for a period of 48 months from the issue date of the FT Units at an exercise price of $0.35 per Warrant Share. The Warrant Share will be issued on a non-flow-through basis. In connection with the FT Unit Offering, certain purchasers of FT Units intend to subsequently (i) donate some or all of such FT Units to registered charities, who may sell such FT Units to third-party investors, and/or (ii) sell some or all of such FT Units to third-party investors.
The Company also intends to raise up to an additional $500,000 by way of a non-flow through non-brokered private placement (the "HD Unit Offering") to accommodate additional investment interest in Silver North. The HD Unit Offering is priced at $0.15 per unit (the "HD Units"), with each HD unit comprised of one common share and one-half of one common share purchase warrant (each whole warrant, a "Warrant") of the Company. Each Warrant will entitle the holder thereof to purchase one common share (a "Warrant Share") of the Company for a period of 48 months from the issue date of the HD Units at an exercise price of $0.35 per Warrant Share.
The Company intends to use the gross proceeds raised from the sale of FT Units for exploration and related programs on the Company's Haldane and GDR mineral properties in the Yukon Territory. Proceeds of the HD Units will be used for general and administrative expenses and project pipeline development.
The Company will use an amount equal to the gross proceeds from the sale of FT Units, pursuant to the provisions in the Tax Act, to incur eligible "Canadian exploration expenses" that qualify as "flow-through mining expenditures" as both terms are defined in the Tax Act (the "Qualifying Expenditures") related to the Company's projects in the Yukon, on or before December 31, 2026, and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Units effective on or before December 31, 2025. If the Qualifying Expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each FT Unit subscriber for any additional taxes payable by such subscriber as a result of the Company's failure to renounce the Qualifying Expenditures as agreed.
The Company may pay finders' fees comprised of cash and non-transferable warrants in connection with the FT Unit Offering and HD Unit Offering, subject to compliance with the policies of the TSX Venture Exchange ("TSXV"). Completion of the two offerings and the payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSXV. The FT Units offered are done so under an arrangement structured by PearTree Securities Inc.
Subject to compliance with applicable regulatory requirements and in accordance with National Instrument 45-106 - Prospectus Exemptions ("NI 45-106"), the FT Units will be offered for sale to purchasers resident in Canada and/or other qualifying jurisdictions pursuant to the listed issuer financing exemption under Part 5A of NI 45-106 (the "Listed Issuer Financing Exemption"). Because the Offering is being completed pursuant to the Listed Issuer Financing Exemption, the securities issuable from the sale of FT Units to Canadian resident subscribers in the Offering will not be subject to a hold period pursuant to applicable Canadian securities laws.
There is an offering document related to the Flow-Through Offering that can be accessed under the Company's profile at www.sedarplus.ca. Prospective investors should read this offering document before making an investment decision.
The securities issued with respect to the HD Unit Offering and the finder's warrants will be subject to a hold period of four months and one day in accordance with applicable securities laws.
The securities described herein have not been, and will not be, registered under the U.S. Securities Act, as amended, or any state securities laws, and accordingly, may not be offered or sold within the United States or the US persons except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
Use of FT Unit Offering Proceeds
Proceeds from the contemplated financing will be used for exploration of the Company's Haldane and GDR projects, both of which are located in Yukon Territory. A prospecting, sampling and mapping program is slated for the Veronica claim block of the GDR Project, located adjacent to the Company's Tim Property (under option to Coeur Mining) in the Silvertip District of southern Yukon. Exploration will follow up on an unexplained multi-element soil geochemical anomaly thought to potentially reflect covered CRD-style silver-lead-zinc mineralization.
At Haldane, a 10 hole (2,500 m) diamond drilling program will target expansion of Keno-style silver lead-zinc mineralization at the newly identified Main Fault target, a wide zone with at least three high grade silver veins identified to date. Drilling will aim to expand both along strike and to depth of the two discovery holes completed in 2024, one of which returned 1,088 g/t silver, 3.90 g/t gold, 1.89% lead and 0.63% zinc over 1.83 metres.
About Silver North Resources Ltd.
Silver North's primary assets are its 100% owned Haldane Silver Project (next to Hecla Mining Inc.'s Keno Hill Mine project), the Tim Silver Project (under option to Coeur Mining Inc. in the Silvertip/Midway District, BC and Yukon) and the GDR project also in the Silvertip/Midway district. Silver North also plans to acquire additional silver properties in favourable jurisdictions.
The Company is listed on the TSX Venture Exchange under the symbol "SNAG", trades on the OTCQB market in the United States under the symbol "TARSF", and under the symbol "I90" on the Frankfurt Stock Exchange.
Mr. Jason Weber, P.Geo., President and CEO of Silver North Resources Ltd. is a Qualified Person as defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
To learn more visit: www.silvernorthres.com
X: https://X.com/SilverNorthRes
LinkedIn: https://www.linkedin.com/company/silvernorth-res-ltd/
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. STATEMENTS IN THIS NEWS RELEASE, OTHER THAN PURELY HISTORICAL INFORMATION, INCLUDING STATEMENTS RELATING TO THE COMPANY'S FUTURE PLANS AND OBJECTIVES OR EXPECTED RESULTS, MAY INCLUDE FORWARD-LOOKING STATEMENTS. FORWARD-LOOKING STATEMENTS ARE BASED ON NUMEROUS ASSUMPTIONS AND ARE SUBJECT TO ALL OF THE RISKS AND UNCERTAINTIES INHERENT IN RESOURCE EXPLORATION AND DEVELOPMENT. AS A RESULT, ACTUAL RESULTS MAY VARY MATERIALLY FROM THOSE DESCRIBED IN THE FORWARD- LOOKING STATEMENTS.
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