Southern Silver Closes First Tranche of Previously Announced Private Placement
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Vancouver, British Columbia--(Newsfile Corp. - July 23, 2024) - Southern Silver Exploration Corp. (TSXV: SSV) ("Southern Silver" or the "Company") has closed the first tranche of its previously reported non-brokered private placement by issuing 9,508,978 units at a price of $0.22 per unit for gross proceeds of $2,091,975. 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 (0.5) 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 $101,745.31 and issued an aggregate 457,029 non-transferable finder warrants, with each finder warrant exercisable to purchase one common share for a period of 3 years. 36,000 finder warrants are exercisable at a price of $0.22 per share and 421,029 finder warrants are exercisable at a price of $0.30 per share. All securities issued and sold under the Offering are subject to a hold period expiring November 20, 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.
