Southern Silver Exploration Corp. [SSV-TSXV, SSVFF-OTCQX] said Wednesday it is increasing the size of a previously announced private placement to $4.5 million, up from the earlier target of $3.3 million.
Southern Silver shares advanced on the news rising 3.8% or $0.01 to 27.5 cents. The shares are currently trading in a 52-week range of 33.5 cents and 11 cents.
The company now plans to issue up to 20.4 million units in a non-brokered private placement financing priced at 22 cents per unit, with each unit consisting of one common share and one half of one warrant. Each whole warrant entitles the holder to purchase one common shares for three years at 30 cents.
Net proceeds from the private placement will be used for the continued development of the company’s 100%-owned Cerro Las Minitas silver-lead-zinc project in Mexico.
Cerro Las Minitas already ranks as one of the largest and high- grade undeveloped silver projects in the world. It is located in a well-established silver mining district, about 79 kilometres to the northeast of the city of Durango. Consisting of 25 concessions covering 34,450 hectares, it lies within the heart of the Faja de Plata (Belt of Silver) of north central Mexico.
The belt is one of the most significant silver producing regions in the world, with current reserves/resources and historic production in excess of 3.0 billion ounces of silver. Major mining operations in the region include Newmont Corp.’s [NGT-TSX, NEM-NYSE] Penasquito mine.
According to an updated estimate dated March 20, 2024, Cerro Las Minitas hosts an indicated resource of 13.3 million tonnes, averaging 102 g/t silver, 0.07 g/t gold, 0.17% copper, 1.3% lead, and 3.1% zinc, totalling 43.4 million ounces of silver, 32,000 ounces of gold, 49 million pounds of copper, 374 million pounds of lead and 921 million pounds of zinc.
On top of that is an inferred resource of 23.4 million tonnes averaging 111 g/t silver, 0.14 g/t gold, 0.21% copper, 1.1% lead and 2.1% zinc, totaling 83.4 million ounces of silver, 104,000 ounces of gold, 111 million pounds of copper, 582 million pounds of lead, and 1.1 billion pounds of zinc.
Southern Silver previously said it was hoping that by improving the economics at Cerro Las Minitas, it can attract a joint venture partner or a major mining company who is willing to buy the project outright and take it to production.
According to an updated preliminary economic assessment (PEA) announced on June 10, 2024, the project can support a large-scale mining operation with a 17-year mine life and average annual plant feed of 14.3 million ounces of silver equivalent (AgEq), (including 5.8 million ounces of silver) and life-of-mine feed totaling 243.2 million ounces of AgEq. (including 98.6 million ounces of silver).
