Southern Silver Exploration Corp. (CVE:SSV) said that it has closed the first tranche of its previously announced non-brokered private placement financing, raising $2.4 million, and has started a phase two 10,000 metre drill program at its Cerro Las Minitas mine, in Mexico.
The offering consisted of 14.1 million units for 17 cents per unit. Each unit consists of one common share and one warrant, exercisable to purchase one additional share for a period of two years for 22 cents per share.
The new funds will be used for exploration and property maintenance expenses incurred on the Cerro Las Minitas and Minas de Ameca projects in Mexico, as well as the Oro project in the United States.
The company has already started a second phase drilling campaign, consisting of 25 to 30 diamond drill holes, totalling 10,000 metres, which crews have now mobilized, at its Cerro Las Minitas project.
Southern Silver intends to expand its current exploration program on its Cerro Las Minitas project in Mexico after initial results reported high-grade silver and polymetallic mineralization from four of ten core holes, completed as part of its phase one operations.
The Cerro Las Minitas property comprises 17 concessions, which cover an area of 10,980 hectares and about 25 kilometre lineal strike length. The property is located 70 kilometres to the northeast of the city of Durango, Mexico, and is accessed easily by road.
Southern Silver and its subsidiaries are engaged in the acquisition and exploration of mineral properties in North America.
The company’s current projects include the silver-lead- zinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca in Mexico, as well as the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver Oro project in New Mexico.