Silvermet Inc.

Silvermet Inc.

February 19, 2016 17:30 ET

Silvermet Announces Private Placement Investment

TORONTO, ONTARIO--(Marketwired - Feb. 19, 2016) -


Silvermet Inc. ("Silvermet" or the "Company") (TSX VENTURE:SYI) announced today it has acquired 1.25 million units ("Units") in the capital stock of Global Atomic Fuels Corporation ("Global Atomic") at a price of C$1.00 per Unit to hold a 1.86% interest in Global Atomic. Each Unit consists of one common share and one-half common share purchase warrant. Each full warrant is exercisable at C$1.50 per common share for a period of twenty-four months from the date Global Atomic common shares are listed for trading on a stock exchange. The private placement closed in January 2015 and is publicly disclosed in the Company's audited financial statements for the year ended December 31, 2014 and subsequent quarterly financial statements. As the private placement is a non-arm's length transaction, disclosure is made here in accordance with Policy 5.3 of the TSX Venture Exchange Corporate Finance Manual.

Global Atomic is a private uranium exploration company currently exploring and developing four uranium deposits in the Republic of Niger, West Africa Global Atomic has been active in Niger for ten years and invested over C$50 million to date to advance the exploration and development of its flagship DASA Deposit ("DASA"). DASA is a near-surface sandstone hosted deposit that is amenable to two-stage open pit and underground development and has significant exploration potential. Uranium fundamentals are approaching balance with industry consensus forecasts indicating a supply deficit by 2020. Global Atomic anticipates concluding an initial public offering late 2016 or early 2017 subject to market conditions.

About Silvermet:

Silvermet's major investment is a 49% interest in a joint venture, Befesa Silvermet Turkey S.L. ("BST"), which operates a Waelz kiln facility ("Kiln") located in Iskenderun, Turkey. BST acquires electric arc furnace dust ("EAFD") from steel mills and recycles the EAFD to produce a high grade oxide zinc concentrate which is sold to zinc smelters throughout the world. BST has secured a US$20 million loan facility from the European Bank for Reconstruction and Development ("EBRD") to fund an expansion and modernization of its Turkish operations. BST holds US$6 million cash, $5 million of which will be invested alongside the EBRD loan facility to fund the total US$25 million cost of the expansion and modernization. BST plans to proceed with the expansion and modernization of its Turkish operations upon improvement in steel market conditions. The EBRD facility may be drawn down at BST's option, any time through December 17, 2016.

Shares Outstanding: 142,204,716

"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."

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 raise 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.

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