Silvermet Inc.
TSX VENTURE : SYI

Silvermet Inc.

August 16, 2007 10:09 ET

Silvermet Inc. Completes Private Placement of $10,673,000 Including the Recent Addition of C$1,959,000

TORONTO, ONTARIO--(Marketwire - Aug. 16, 2007) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Silvermet Inc., ("Silvermet") (TSX VENTURE:SYI) is pleased to announce that, in addition to the "best-efforts" private placement of $8,714,000 announced on May 25, 2007, it has closed a non-brokered private placement of 2,062,500 units of the Company (each a "Unit") at a price of CDN $0.40 per Unit and 2,835,000 flow-through shares of the Company ("Flow-Through Shares") at a price of CDN $0.40 per Flow-Through Share for additional gross proceeds of CDN $1,959,000.

The sum total of the "best efforts" private placement and the additional non-brokered placement amounts to $10,673,000, of which $7,105,000 was raised through the sale of Units and $3,568,000 was raised through the sale of Flow-Through Shares.

Each Unit consists of one common share of the Company ("Common Share") and one-half of one Common Share purchase warrant. Each whole Warrant entitles the holder to acquire one Common Share at an exercise price of $0.50 per Common Share. The Warrants are exercisable for 18 months from the date of issuance.

The Company issued finder's warrants numbering 229,500 in connection with the non-brokered private placement. Each is exercisable to purchase common shares of the Company at an exercise price of $0.40 per share for a period of 24 months from the date of issuance.

Silvermet intends to use the proceeds from the private placement for exploration expenditures and general working capital purposes.

As a result of the new placements, the company as of August 16, 2007 now has issued 74,163,019 shares and 13,895,683 warrants including broker's warrants. The securities issued under the non-brokered private placement issued, are subject to a four month resale restriction.

Silvermet Inc. 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.

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.

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.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Silvermet Inc.
    Clifford H. Frame
    Chairman
    (416) 203-8336
    (416) 203-9483 (FAX)
    Website: www.silvermet.ca
    or
    Silvermet Inc.
    Stephen G. Roman
    President and CEO
    (416) 368-3949