Defiance Silver Closes Oversubscribed Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/27/12 -- Further to news release dated September 10, 2012, Defiance Silver Corp ("Defiance") (TSX VENTURE:DEF) is pleased to announce that it has closed the second and final tranche of its amended private placement with the issuance of 1,675,000 units at a price of $0.20 per Unit for gross proceeds of $335,000. These units are subject to a four month hold period expiring four months from the date of issue. Gross proceeds from the two tranches totals $883,300. This amount includes an oversubscription of $383,300.
Closing of the Offering is subject to receipt of all required regulatory approvals including the approval of the TSX Venture Exchange. The Company may pay finder's fees in compliance with TSX Venture Exchange policies on some or all of the Offering. Finder's fees of $12,600 and 7,000 broker warrants are payable in connection with the second tranche of the private placement. The broker warrants have the same terms as the terms of the warrants described in this private placement.
The proceeds from the Offering will be used at the discretion of the Company for: general working capital purposes, the ongoing refurbishment of the Santa Gabriela Mill and the development of the San Acacio Silver Mine.
About Defiance Silver:
Defiance Silver Corp. is a near term silver producer engaged in the acquisition, exploration, and development of advanced silver projects in Zacatecas Mexico. The Company's efforts are focused on: (1) the purchase and refurbishment of the 200 tpd Santa Gabriela Mill, (2) the exercising of an option to purchase the San Acacio Silver Mine, and (3) the definition of feed for the Santa Gabriela Mill from surface dumps and the San Acacio Silver Mine with its historical resource (see Defiance News Release dated November 1, 2011) and excellent potential for defining additional resources.
On behalf of Defiance Silver Corp.
Bruce Winfield, President and CEO
Forward-Looking Statements. This Defiance News Release may contain certain "forward-looking" statements and information relating to Defiance that are based on the beliefs of Defiance management, as well as assumptions made by and information currently available to Defiance management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, there being no assurance the private placement will be fully subscribed on the terms outlined above. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Defiance does not assume the obligation to update any forward-looking statement.
Neither 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.
Defiance Silver Corp.
President and CEO
Defiance Silver Corp.
1500 - 409 Granville Street
Vancouver, BC V6C 1T2
Source: Defiance Silver via MarketWire
Disclosure: Defiance silver is a Vulture Bargain Candidate of Interest (VBCI). Members of the GGR team may hold a long position in DEF.V. The editor of GGR participated in a recent financing for the company.