04:29:40 EDT Thu 18 Jul 2024
Enter Symbol
or Name
USA
CA



Silver Bullet Mines Corp
Symbol SBMI
Shares Issued 66,697,522
Close 2023-04-14 C$ 0.20
Market Cap C$ 13,339,504
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Silver Bullet enters cash advance on first order

2023-04-17 13:13 ET - News Release

Mr. John Carter reports

SILVER BULLET MINES CORP. ANNOUNCES CASH ADVANCE ON FIRST ORDER

Silver Bullet Mines Corp. has entered into a cash advance from a purchaser of its silver products.

Silver Bullet had previously announced an order for 50 kilograms of silver from the purchaser, which order has since been increased to 500 kilograms (17,600 ounces) of silver. The purchaser has indicated a willingness to purchase 17,600 oz of silver from Silver Bullet every month for the foreseeable future. Management reasonably believes Silver Bullet has the capability to fill such monthly orders.

The purchaser and Silver Bullet have since entered into an agreement whereby the purchaser would advance $225,000 (U.S.) against the first delivery of silver to it by Silver Bullet. This advance would be secured by a conditional convertible debenture. The debenture only becomes convertible in the event Silver Bullet does not deliver $225,000 (U.S.) of silver to the purchaser within 60 days of Silver Bullet receiving the $225,000 (U.S.) advance. This amounts to a little more than 9,000 oz of silver, depending upon the spot price at the time of delivery.

The principal amount of the debenture would decrease as Silver Bullet delivers silver to the purchaser, and would expire upon the delivery of $225,000 (U.S.) worth of silver to the purchaser. Once Silver Bullet has delivered $225,000 (U.S.) worth of silver to the purchaser, the debenture would expire. The debenture would accrue interest at the rate of 3 per cent per month on the outstanding principal for one month, which interest begins to accrue after 30 days. After 60 days, either the interest converts with the debenture, or, if Silver Bullet has delivered $225,000 (U.S.) worth of silver to the purchaser, the obligation to pay interest would expire.

The funds would be advanced by the purchaser immediately after Silver Bullet receives regulatory approval for the debenture, and would be used for working capital purposes.

We seek Safe Harbor.

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