Toronto, Ontario--(Newsfile Corp. - February 1, 2022) - This news release is being disseminated as required by National Instrument 62-103 - The Early Warning System and Related Take-Over Bid and Insider Reporting Issues in connection with the filing of an early warning report regarding class A common shares (the "Common Shares") in the capital Silver Mountain Resources Inc. (the "Issuer"), having a head office address located at 82 Richmond Street East, Toronto, ON M5C 1P1.
On January 26, 2022, the Issuer filed a final long-form prospectus (the "Prospectus") in each of the provinces of Canada, except Quebec. Immediately prior to and immediately after the filing of the Prospectus, the Issuer had 133,519,860 Common Shares issued and outstanding on a non-diluted basis.
The filing of the Prospectus triggered the requirement of Mula Mining Corp. (the "Acquiror") to file an early warning report. Immediately following the filing of the Prospectus, the Acquiror beneficially and directly owned and controlled 25,000,000 Common Shares, representing ownership of approximately 18.72% of the issued and outstanding Common Shares of the Issuer on a non-diluted basis.
The Acquiror acquired 25,000,000 Common Shares (on a post-split basis) on March 10, 2021 at a price of $0.0012637 (USD$0.001) per Common Share, for an aggregate purchase price of $31,592.50 (USD$25,000).
The Acquiror acquired the Common Shares for investment purposes. The Acquiror has a long-term view of the investment and may acquire additional securities or dispose of securities either on the open market or through private acquisitions in the future depending on market conditions, reformulation of plans and/or other relevant factors and subject to applicable securities laws. The Acquiror may, from time to time and at any time, acquire additional Common Shares and/or other equity, debt or other securities or instruments of the Issuer in the open market or otherwise, and reserves the right to dispose of any or all of the Common Shares in the open market or otherwise at any time and from time to time, and to engage in similar transactions with respect to the Common Shares, the whole depending on market conditions, the business and prospects of the Issuer and other relevant factors, including compliance with applicable securities laws.
All of the Common Shares beneficially and directly owned and controlled by the Acquiror are subject to the terms of an escrow agreement dated January 26, 2022 (the "Escrow Agreement"). Pursuant to the terms of the Escrow Agreement, the Acquiror is restricted in its ability to sell, transfer or pledge, or otherwise dispose of or transfer the economic consequences of securities of the Issuer held by it for a period of 36 months following the date on which the Common Shares are listed for trading on the TSX Venture Exchange (the "Listing Date"). Pursuant to the Escrow Agreement, 10% of the subject securities are released on the Listing Date and the remaining securities are released in six equal tranches every six months following the Listing Date.
A copy of the early warning report describing the above transaction is available on SEDAR at www.sedar.com under the profile for the Issuer.
For Further Information Contact: Mula Mining Corp., 150 King Street West, Toronto ON M5H 3T9.
Phone: +51 991688540
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/112387
