Southern Silver Extends Closing of Non-Brokered Private Placement
MWN-AI** Summary
Southern Silver Exploration Corp. (TSXV: SSV) announced a 30-day extension for closing its previously announced non-brokered private placement, following approval from the TSX Venture Exchange. The placement aims to raise $2.2 million through the issuance of up to 10 million units, with each unit priced at $0.22. Each unit comprises one common share and one-half of a share purchase warrant, allowing the purchase of an additional common share at $0.32 for up to two years.
The company may pay finders’ fees in cash and non-transferable warrants, in line with TSX Venture Exchange policies. All securities from the offering will be subject to a four-month hold period post-closing. The net proceeds from this private placement are earmarked primarily for the advancement of the Cerro Las Minitas (CLM) project in Durango, Mexico, as well as general corporate and working capital needs.
Southern Silver highlighted that this initiative follows a July 2024 preliminary economic assessment (PEA) update, with ongoing efforts on a 6,000-metre drill program aimed at exploring high-grade mineralization extensions, and advancing multiple opportunities identified in the PEA. CLM is positioned as a large-scale underground mining project with favorable economic prospects in a conducive mining jurisdiction.
Additionally, the company has projects in New Mexico, USA, including the Oro copper-gold project and the Hermanas gold-silver vein project, for which drilling permits are currently sought. The release emphasizes that the offering does not constitute a sale in the United States and mentions forward-looking statements that involve risks and uncertainties affecting actual results. For more comprehensive information, interested parties are directed to visit Southern Silver's website.
MWN-AI** Analysis
Southern Silver Exploration Corp. (TSXV: SSV) has recently announced a 30-day extension to close its non-brokered private placement aimed at raising up to $2.2 million to advance its Cerro Las Minitas (CLM) project in Durango, Mexico. This extension signals that the company is experiencing a favorable reception from the market, which is generally a positive indicator for investors.
Investors should closely monitor the company’s upcoming milestones, particularly the ongoing 6,000-meter drill program and the exploration of new opportunities to enhance the outcome of its previously released preliminary economic assessment (PEA). Given that the CLM project has demonstrated robust project economics, the strategic use of proceeds from the private placement could further mitigate risks associated with the project development, ultimately leading to increased valuation.
With the warrants priced at $0.32, investors who participate in the private placement at $0.22 per Unit could benefit significantly in the near term if the stock appreciates post-drilling results. However, potential investors should be cautious due to the inherent risks associated with mining investments, including commodity price volatility and regulatory approval timelines.
As Southern Silver aims to derisk the CLM project, staying informed on regulatory developments and the performance of its exploration activities becomes crucial. The mining landscape in Durango is favorable, given the region's historical production and infrastructure availability, which could contribute positively to Southern Silver's future operating costs and project timelines.
In summary, the current private placement offers an attractive investment opportunity at a discounted rate while strategically positioning the company for future growth. However, investors should remain vigilant and consider the risks and timing associated with mineral exploration and development.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Vancouver, British Columbia--(Newsfile Corp. - January 7, 2025) - Southern Silver Exploration Corp. (TSXV: SSV) (the "Company" or "Southern Silver") reports that the Company has received approval from the TSX.Venture Exchange for a 30-day extension to close the previously announced non-brokered private placement, consisting of up to 10,000,000 units ("Units") at a price of $0.22 per Unit for gross proceeds of $2,200,000 (the "Offering"). Each Unit consists of one common share and one-half of one share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of two years at an exercise price of $0.32 per share.
The Company may pay finders' fees comprised of cash and non-transferable warrants in connection with the Offering, subject to compliance with the policies of the TSX Venture Exchange. All securities issued and sold under the Offering will be subject to a hold period expiring four months and one day from closing. Completion of the Offering and the payment of any finders' fees remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange.
Net proceeds from the Offering will be used for the continued advancement of the Cerro Las Minitas ("CLM") project in Durango, Mexico, and for general corporate and working capital purposes.
Following the July 2024 preliminary economic assessment ("PEA") update (refer to Addendum #1), the Company is continuing to advance the CLM project, with (i) a current 6,000-metre drill program, targeting further lateral extensions of shallow, high-grade mineralization, (ii) studying and advancing numerous upside opportunities to the July 2024 PEA, and (iii) derisking the project and commencing with the collection of baseline data and similar surveys and studies.
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 CLM Project please refer to the following link or the Company's Technical Report filing on SEDAR+;
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 .
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Forward-looking statements in this news release include the amount of the Offering, closing of the Offering and the Company's plans to advance the CLM project. These statements are based on a number of assumptions, including, but not limited to, general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the Company's projects, and the availability of financing for the Company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions.
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/236248
FAQ**
What are the primary use cases for the net proceeds from the Southern Silver Exploration Corp. SSV:CC private placement, and how will these funds directly impact the Cerro Las Minitas project in Durango, Mexico?
How does the current 6,000-metre drill program planned by Southern Silver Exploration Corp. SSV:CC aim to enhance the project's economic viability and mineral resource estimates?
What specific milestones can investors expect from Southern Silver Exploration Corp. SSV:CC regarding the advancement of the Cerro Las Minitas project in the next 6 to 12 months?
How does the mining jurisdiction in southeast Durango, Mexico, influence the operational strategy and potential risk factors for Southern Silver Exploration Corp. SSV:CC's ongoing projects?
**MWN-AI FAQ is based on asking OpenAI questions about Southern Silver Exploration Corp. (TSXVC: SSV:CC).
NASDAQ: SSV:CC
SSV:CC Trading
-1.61% G/L:
$0.305 Last:
143,731 Volume:
$0.305 Open:
