Prince Silver, previously known as Hawthorn Resources, has completed the acquisition of all issued and outstanding shares of Stampede Metals Corporation, a Nevada-based company, from Stampede Metals Limited (Stampede AU), an Australian private company.
This move follows the share exchange agreement, as amended, that had previously been announced.
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The company has also issued all securities related to the acquisition, converted its subscription receipts into common shares and warrants, and filed a technical report as per the 43-101 standards of disclosure for mineral projects.
With the name change and consolidation now effective, Prince Silver’s common shares are trading under the new symbol “PRNC.”
As part of the acquisition’s closure, Prince Silver issued 15 million consideration units to Stampede AU.
Each unit consists of one common share and approximately 0.567 of a contingent value right.
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By GlobalDataThese rights will convert into up to 8.5 million milestone shares if certain resource milestones are achieved by 2028.
The company has the option to accelerate this conversion and reduce the total number of milestone shares by 20% within the first year.
Prince Silver president Ralph Shearing stated: “The completion of this transaction and our rebranding as Prince Silver Corp mark a major milestone for the company.
“We are now fully aligned with our flagship Prince Silver Project – a large-scale silver asset located in one of the world’s premier mining jurisdictions. With silver prices reaching multi-year highs and a previously disclosed exploration target in place, we believe this is a timely opportunity to unlock significant value for our shareholders.”
350,000 common shares have been issued to an arm’s length party as finder’s consideration at a deemed price of $0.27 per share.
The company’s subscription receipts have been converted into more than 14.8 million common shares and 7.4 million share purchase warrants, exercisable at $0.40 until 23 December 2026.
This conversion has released gross proceeds of $4m from trust to the company. 369,111 Finder’s Warrants were issued, and finder fees of $101,550 were paid.
Following these transactions, Prince Silver now has 45.9 million common shares issued and outstanding on a post-consolidation basis.
With the issuance of the consideration units, Stampede AU now holds 32% of the company’s issued and outstanding shares, making it a new control person under applicable securities laws and CSE policies.
Stampede AU intends to distribute the consideration units to its shareholders after completing the necessary Australian corporate and regulatory documentation, after which it is expected to no longer be a control person.
Stampede AU has agreed to a voluntary lock-up of its consideration units for one year or until it ceases to be a control person, whichever is later.
During this period, Stampede AU will abstain from voting its shares, except in votes involving a change of control.
