Silvercrest Metals Inc. has entered into an agreement with a syndicate of underwriters led by National Bank Financial Inc., Eight Capital Corp. and Scotia Capital Inc., pursuant to which the underwriters have agreed to purchase, on a bought-deal basis, 9.1 million common shares of the company at a price of $8.25 per share for aggregate gross proceeds to the company of $75,075,000.

The underwriters have been granted an option, exercisable in whole or in part, at any time within 30 days following the closing of the offering, to purchase from the company up to an additional 15 per cent of the shares offered under the offering.

The company will pay the underwriters a cash commission of 5 per cent of the gross proceeds of the offering, including any proceeds realized on exercise of the overallotment option, subject to reduced commission of 2.5 per cent on maximum proceeds of up to $3-million from the president’s list of subscribers.

The company intends to use the net proceeds of the offering for the continued exploration and development of the company’s Las Chispas project and for general working capital and administrative purposes.

The offering is expected to close on or about April 3, 2020, and is subject to a number of conditions, including receipt of all necessary securities regulatory approvals and the approval of the Toronto Stock Exchange and New York Stock Exchange.

The offering is being made pursuant to a short-form prospectus to be filed in each of the provinces of Canada (other than Quebec) and may be offered by way of private placement in the United States. The offering may be also sold in such other jurisdictions as the company and the underwriters may agree.

In the event that related parties of the company acquire shares under the offering, such participation would be considered to be related-party transactions within the meaning of Multilateral Instrument 61-101. The company intends to rely on the exemptions from the formal valuation and minority approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101 in respect of any related-party participation on the basis that neither the aggregate fair market value of the shares to be distributed to nor the consideration to be paid by related parties will exceed 25 per cent of the company’s market capitalization as determined under MI 61-101.

Pursuant to an agreement between the company and SSR Mining Inc. dated Nov. 28, 2018 (see news release dated Nov. 29, 2018), SSR Mining has a right to maintain its pro rata ownership interest of up to 9.9 per cent of the outstanding shares of Silvercrest. SSR Mining must exercise such right within two business days from the date that Silvercrest gives SSR Mining notice of the offering.

About Silvercrest Metals Inc.

Silvercrest is a Canadian precious metals exploration company headquartered in Vancouver, B.C., that is focused on new discoveries, value-added acquisitions and targeting production in Mexico’s historic precious metal districts. The company’s current focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico. The Las Chispas project consists of 28 100-per-cent-owned mineral concessions where all of the resources are located. Silvercrest is the first company to successfully drill test the historic Las Chispas project, resulting in numerous discoveries that are being evaluated for economic viability and potential production in the future.

We seek Safe Harbor.