Silver Elephant raises $264,308 in first tranche of private placement

Silver Elephant Mining Corp. (TSX: ELEF) (OTCQB: SILEF) (FSE: 1P2) closed the first tranche of its non-brokered private placement, raising gross proceeds of $264,308 through the sale of 1,651,926 units at $0.16 per unit, according to a company statement.

Each unit consists of one common share and one share purchase warrant. The warrants entitle holders to purchase one additional share at $0.20 per share for three years from issuance.

The company paid finder's fees of 14,000 finder's units, each consisting of one share and one warrant.

John Lee, a company director, subscribed for 406,250 units for $65,000, while Ron Motz, a shareholder holding more than 10% of the company's common shares, subscribed for 400,000 units for $64,000. These transactions are considered related party transactions under Multilateral Instrument 61-101. The company relied on exemptions from formal valuation and minority shareholder approval requirements as the participation did not exceed 25% of the fair market value of the company's market capitalization.

The securities issued under the private placement will be subject to a regulatory hold period of four months plus one day from the date of issue. Proceeds are expected to be used for general corporate purposes.

Silver Elephant is a mineral exploration company with gold and silver projects in Bolivia. The company will file a material change report regarding the related party transaction.

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