Toronto, Ontario, October 3, 2013 – Canadian Silver Hunter Inc. (“CSH”) (TSX-V: AGH) is pleased to announce that yesterday it completed a non-brokered private placement financing of 400,000 common shares of CSH (each, a “Common Share”) issued on a flow-through basis at a price of $0.10 per Common Share for gross proceeds of $40,000 (the “Offering”).
The securities issued pursuant to the Offering are subject to a statutory hold period until February 3, 2014. CSH will use the net proceeds from the Offering to fund continued exploration on its South Lorrain Project.
The participation in the Offering by certain “related parties” of CSH constitutes a “related party transaction” as such terms are defined by Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”), requiring CSH, in the absence of exemptions, to obtain a formal valuation for, and minority shareholder approval of, the “related party transaction”. Mr. Jeffrey Hunter, CSH’s President and CEO, subscribed for 200,000 Common Shares for proceeds for $20,000 under the Offering, representing just over 1% of the total number of Common Shares issued and outstanding immediately prior to the Offering. As of the completion of the Offering, Mr. Hunter now holds, controls or directs, directly or indirectly, 5,301,000 Common Shares representing approximately 27.8% of the outstanding Common Shares on a post-transaction basis. Mr. Carmelo Marrelli, CSH’s CFO, subscribed for 100,000 Common Shares for proceeds of $10,000 under the Offering, representing just over 0.5% of the total number of Common Shares issued and outstanding immediately prior to the Offering. As of the completion of the Offering, Mr. Marrelli now holds, controls or directs, directly or indirectly, 210,000 Common Shares representing approximately 1.1% of the outstanding Common Shares on a post-transaction basis. CSH is relying on the exemptions from the formal valuation and minority approval requirements under MI 61-101 pursuant to which a formal valuation and minority approval are not required because at the time the Offering was agreed to, neither the fair market value of the subject matter of, nor the fair market value of the consideration for, the participation in the Offering by Messrs. Hunter and Marrelli exceeded 25% of CSH’s market capitalization. The participation by each of Messrs. Hunter and Marrelli in the Offering was approved by the independent directors of CSH. It was not practicable for CSH to previously disclose the participation in the Offering by insiders of CSH earlier, as the level of participation was not known to CSH until immediately prior to closing.
About Canadian Silver Hunter
Canadian Silver Hunter Inc. is a Canadian exploration company focused on the exploration of silver-cobalt deposits on its flagship South Lorrain Project (formerly the Keeley Frontier Project). The South Lorrain Project is located within the historic South Lorrain Silver Camp, which along with the historic Cobalt and Gowganda silver camps is part of a world class silver district in the Abitibi Greenstone Belt between Temagami and Kirkland Lake, in northeastern Ontario.
The South Lorrain Project is made up of four properties, centered by two prolific past producing silver-cobalt mines, the Keeley and the Frontier. Combined production from the two mines totaled 19.2 million ounces of silver, and 3.3 million pounds of cobalt, with an average grade of 58 ounces of silver per tonne.
The company will continue to focus its exploration efforts on the existing targets located on the Keeley-Frontier property portion of the project. For further details about the Company’s project and plans please visit the Canadian Silver Hunter Inc. website at www.canadiansilverhunter.ca.
For further information please contact:
Canadian Silver Hunter Inc.
President and CEO
Tel: (416) 707-4230
Neither the TSX-V 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.
This release includes certain “forward-looking statements”. These statements are based on information currently available to CSH and CSH provides no assurance that actual results will meet management’s expectations. Forward-looking statements include estimates and statements that describe CSH’s future plans, objectives or goals, including words to the effect that the Company or management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results relating to, among other things, results of exploration or project development related to the CSH’s mineral properties, outcomes of proposed or contemplated acquisitions or other transactions, the CSH’s financial condition and prospects, and the use of proceeds of the Offering, could differ materially from those currently anticipated in such statements for many reasons such as: changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; operational difficulties encountered in connection with the activities of CSH; and other matters discussed in this news release. This list is not exhaustive of the factors that may affect any of CSH’s forward-looking statements. These and other factors should be considered carefully, and readers should not place undue reliance on CSH’s forward-looking statements. CSH does not undertake to update any forward-looking statement that may be made from time to time by CSH or on its behalf, except in accordance with applicable securities laws.