Mining
Tuesday, August 13th, 2024 2:32 pm EDT
Key Points
- Private Placement Progress: Southern Silver Exploration Corp. has closed the second tranche of its non-brokered private placement, raising a total of $3,392,505 so far, with plans to raise up to $4.5 million by issuing up to 20,454,546 units at $0.22 per unit.
- Use of Proceeds: The funds from the private placement will be used for the continued development of the Cerro Las Minitas (CLM) project in Durango, Mexico, specifically for resource expansion through a drilling program and ongoing project de-risking activities.
- Project Focus: The CLM project is being developed as a large-scale underground mining operation with strong economic potential, located in a mining-friendly area in southeast Durango, Mexico. Drilling is set to begin in early September 2024.
Vancouver, British Columbia–(Newsfile Corp. – August 13, 2024) – Southern Silver Exploration Corp. (TSXV: SSV) (“Southern Silver” or the “Company”) has closed the second tranche of its previously reported non-brokered private placement by issuing 5,911,500 units at a price of $0.22 per unit for gross proceeds of $1,300,530. The Company has now closed two tranches for a total of 15,420,478 units for gross proceeds of $3,392,505. At final closing, the Company plans to issue up to 20,454,546 units in the non-brokered private placement (the “Offering”) at a price of $0.22 per unit for gross proceeds of $4.5 million. Each unit will consist of one common share and one-half of one warrant. Each whole warrant entitles the holder thereof to purchase one common share for a period of 3 years at a price of $0.30.
In connection with the Offering, the Company paid finders’ fees totalling $7,920 and issued an aggregate 36,000 non-transferable finder warrants for the second tranche, with each finder warrant exercisable to purchase one common share for a period of 3 years at a price of $0.30 per share. All securities issued and sold under the second tranche are subject to a hold period expiring December 13, 2024. The Offering and the payment of finders’ fees is subject to TSX Venture Exchange acceptance.
Net proceeds from the private placement will be used for the continued development of the Cerro Las Minitas (CLM) property, Durango, Mexico and for working capital. Specifically, the Company plans to initiate a program of resource expansion of up to 6000m of drilling in 11 holes to test shallow targets along the north side of the Cerro between the North Felsite and Skarn Front deposits. Drilling will start in early September. Work continues to de-risk the project through the initiation of base-line studies and continued social engagement.
As currently modelled, the CLM project features a large-Scale underground mining operation with robust project economics and high gross revenues in a well located and mining friendly jurisdiction in southeast Durango, Mexico.
For more information on the details of the current economic assessment of the Cerro Las Minitas Project please refer to news release NR-01-24 dated June 10, 2024.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the units, nor was there any sale of the units in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The units offered will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, a U.S. person.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an exploration and development company with a focus on the discovery of world-class mineral deposits either directly or through joint-venture relationships in mineral properties in major jurisdictions. Our specific emphasis is the 100% owned Cerro Las Minitas silver-lead-zinc project located in the heart of Mexico’s Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, Los Gatos, San Martin, Naica and Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional professionals to support our exploration efforts in developing the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. Our property portfolio also includes the Oro porphyry copper-gold project and the Hermanas gold-silver vein project where permitting applications for the conduct of a drill program is underway, both located in southern New Mexico, USA.
Robert Macdonald, MSc. P.Geo, is a Qualified Person as defined by National Instrument 43-101 and supervised directly the collection of the data from the CLM Project that is reported in this disclosure and is responsible for the presentation of the technical information in this disclosure.
On behalf of the Board of Directors
“Lawrence Page”
Lawrence Page, K.C.
President & Director, Southern Silver Exploration Corp.
For further information, please visit Southern Silver’s website at southernsilverexploration.com or contact us at 604.641.2759 or by email at corpdev@mnxltd.com .
