Silvermet Inc.

Silvermet Inc.

April 30, 2008 17:32 ET

Silvermet Inc. Announces Completion of Private Placement

TORONTO, ONTARIO--(Marketwire - April 30, 2008) -


Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) today announced that it has completed a private placement offering of 7,740,198 units ("Units") at a price of $0.15 per Unit for aggregate gross proceeds of approximately $1.2 million (the "Offering"). Each Unit consists of one common share in the capital of Silvermet ("Common Share") and one half warrant (a "Warrant"). Each whole Warrant entitles the holder thereof to purchase one additional Common Share at an exercise price of $0.25 per Common Share. The Warrants are exercisable for a period of 12 months following the closing of the Offering (the "Closing Date").

The Warrants are subject to an acceleration clause (the "Acceleration Clause") whereby if at any time after four months and one day following the Closing Date, the closing trading price of the Common Shares is $0.35 or more for a period of 20 consecutive trading days, the Company will have the option to require the earlier exercise of the Warrants within 30 days of formal notice from the Company.

All of the securities issued by Silvermet pursuant to the Offering are subject to a four month hold period under Canadian securities laws and are subject to restrictions on resale prior to August 30, 2008. A broker's fee of 7% of the aggregate gross proceeds from the Offering is payable to certain brokers, and broker warrants ("Broker Warrants") equal to 10% of the aggregate number of Units sold pursuant to the Offering are issuable in connection with the Offering. Each Broker Warrant will entitle the holder to purchase one Common Share (a "Broker Share") of the Company at an exercise price of $0.15 per Broker Share for a period of 18 months from the date of its issuance.

The proceeds from the Offering will be used for further exploration and development of Silvermet's assets and general working capital purposes.

The Common Shares issuable pursuant to the Offering have been conditionally approved for listing by the TSX Venture Exchange. The securities issued under this Offering were offered by way of private placement exemptions in all the provinces of Canada, offshore in the United States on a private placement basis pursuant to exemptions from the registration requirements of the United States Securities Act of 1933, as amended.

The securities issued under this Offering have not, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.

Silvermet is an exploration and development company presently focused on developing a number of zinc projects in Turkey and exploring its nickel-copper-platinum group metals project located in Nunavut, Canada.

Caution concerning forward-looking statements: The information in this release may contain forward-looking information under applicable securities laws. This forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those implied by the forward-looking information. Factors that may cause actual results to vary include, but are not limited to, inaccurate assumptions concerning the exploration for and development of mineral deposits, political instability, currency fluctuations, unanticipated operational or technical difficulties, changes in laws or regulations, the risks of obtaining necessary licenses and permits, changes in general economic conditions or conditions in the financial markets and the inability to raised additional financing. Readers are cautioned not to place undue reliance on this forward-looking information. The Company does not assume the obligation to revise or update this forward-looking information after the date of this release or to revise such information to reflect the occurrence of future unanticipated events except as may be required under applicable securities laws. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

The TSX Venture Exchange has in no way passed upon the merits of the transaction and has neither approved nor disapproved the contents of this press release.

Contact Information

  • Silvermet Inc.
    Clifford H. Frame
    (416) 203-8336
    (416) 203-9483 (FAX)
    Silvermet Inc.
    Stephen G. Roman
    President and CEO
    (416) 368-3949