Southern Silver Exploration Corp. (CVE:SSV) said Monday that it has closed the first tranche of its private placement offering by issuing 6.63 million units at a price of 10 cents each for proceeds of $662,700.
The company said that each unit consists of one common share and one
share purchase warrant, exercisable to purchase one additional common
share for a period of three years at a price of 17 cents per share.
In early April, the company announced revised plans to issue up to 20
million units at a price of $0.12 to $0.10 each, for gross proceeds of
The new funds from the first tranche of the offering will be used for
exploration and property maintenance expenses incurred on Southern’s
Cerro Las Minitas project in Mexico, and the Oro gold-silver-copper
project in New Mexico, USA, where a 20,000 metre drill program is
In early April, Southern unveiled drilling results that extend high
grade silver-polymetallic mineralization at the Blind and El Sol zones
on the Cerro Las Minitas project in Durango State, Mexico.
At the El Sol zone, drilling returned a 26.1 metre interval averaging
67 grams per tonne (g/t) silver, 2.8% lead, and 3.3% zinc, or 239 g/t
silver equivalent, including 1.8 metres at 163 g/t silver, 6.9% lead and
8.8% zinc, or 619 g/t silver equivalent in hole 12CLM-044.
Meanwhile, at the Blind zone, drilling continues to delineate both
the lateral extent and internal continuity of the mineralized zone, the
Results from the northwest extension of the zone include 4.6 metres
averaging 146 g/t silver, 3.0% lead and 2.8% zinc, or 472 g/t silver
equivalent, from hole 12CLM-041; and 4.2 metres of 145 g/t silver, 2.7%
lead and 2.0% zinc, or 305 g/t silver equivalent, from hole 12CLM-043.
The silver miner has scheduled 20,000 metres of core drilling in 2012
at the property, with the aim of completing an NI 43-101 compliant
resource on these first set of targets by the fourth quarter.
The property comprises 18 concessions that total 15,125 hectares and an approximate 25 kilometre strike length.
Silver is a precious and base metal exploration company. It aims to
acquire, explore and develop properties in progressive jurisdictions
within North America.
Its current projects include the silver-lead-zinc Cerro Las Mintas
project and the copper-gold-silver Minas de Ameca project in Mexico, the
porphyry copper-molybdenum Dragoon project in Arizona and the
gold-silver Oro project in New Mexico.