Silver Hammer Mining Corp. and Stroud Resources Ltd. intend to raise between C$7,000,000 and C$10,000,000 through a brokered private placement of subscription receipts priced at C$0.26 each. The financing supports the previously announced business combination involving Silver Hammer, Stroud, and SilverMark Resources Inc., which will combine assets into a new entity named Silver Frontier Resources Corp.

The offering is led by Red Cloud Securities Inc. as sole bookrunner and agent syndicate lead. Each subscription receipt converts into one common share and one full purchase warrant of the resulting issuer, with warrants exercisable at C$0.38 for 36 months following closing. The financing structure includes an agents' option to sell up to an additional C$2,000,000 in subscription receipts, and the placement is expected to include participation from cornerstone shareholder Eric Sprott.

Net proceeds will fund the exploration and advancement of the combined company's silver project portfolio, alongside general working capital. Before the amalgamations take effect, Silver Hammer will complete a four-for-one share consolidation. The resulting entity will trade on the Canadian Securities Exchange under the Silver Frontier name, while Stroud shares will delist from the TSX Venture Exchange.

The financing proceeds are held in escrow pending the satisfaction of release conditions, including the clearance of all combination terms, by October 31, 2026. The offering itself is scheduled to close on or around October 15, 2026, subject to regulatory, stock exchange, and shareholder approvals.

Stroud is a Canadian public company listed on the TSX Venture Exchange focused on exploring and developing the Santo Domingo Silver-Gold Project in Jalisco, Mexico. Before the transaction, Silver Hammer held a 100% interest in three exploration-stage silver properties in the United States, comprising the Silver Strand Project in Idaho alongside the Eliza Silver Project and Silverton Silver Mine Project in Nevada.

Regional activity in Jalisco includes silver sector transactions such as First Majestic Silver Corp. entering into a definitive agreement to sell its San Martin Silver Mine in the state.

Read the full announcement: Silver Hammer and Stroud Resources Announce up to C$10 Million Brokered Financing in Connection with Silver Frontier Transaction