Silvermet Inc.

Silvermet Inc.

April 12, 2007 16:15 ET

Silvermet Inc.: Press Release

TORONTO, ONTARIO--(CCNMatthews - April 12, 2007) - Silvermet Inc., ("Silvermet") (TSX VENTURE:SYI) is pleased to announce that it has completed a financing with Frame Mining Corporation ("Frame Mining") and Greyling Investments Inc. ("Greyling") in the aggregate amount of $250,000 (the "Loan"), with Frame Mining advancing $50,000 of the Loan and Greyling advancing the remaining $200,000. The Loan is evidenced by convertible promissory notes (the "Notes") which are convertible into common shares of Silvermet (each, a "Conversion Share") at a conversion price per Conversion Share equal to the greater of $0.40 or the issue price per security on the next Silvermet financing. Conversion of the full amount of Notes at the above mentioned price of $0.40 per share would result in the issuance of an aggregate of 625,000 Conversion Shares. The Notes have a term of 1 year with simple interest at the rate of 1% per month.

In consideration of the Loan, each of Frame Mining and Greyling were each issued common share purchase warrants ("Warrants") of Silvermet equal to one-half of the number of Conversion Shares, based on the conversion price of $0.40, issuable to each of Frame Mining and Greyling upon the exercise of their conversion right under their respective Notes. An aggregate of 312,500 Warrants were issued in connection with the Loan. Each Warrant will entitle its holder to purchase one common share until October 12, 2008. Each Warrant is exercisable at a price equal to the greater of $0.40 or the issue price per security on the next Silvermet financing.

Both the Notes and the Warrants are subject to resale restrictions under applicable securities laws and the rules of the TSX Venture Exchange until August 13, 2007.

The proceeds of the Loan will be used for general working purposes and more specifically the costs related to land surveys and lease charges on Silvermet's Muskox properties in Nunavut.

Frame Mining is an insider of Silvermet.

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. Silvermet 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 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