Arian Silver's financing negotiations advancing

Arian Silver (LON:AGQ, CVE:AGQ) told investors that negotiations over future financing are positively advancing.

As reported at the end of July, the firm oulined a C$15mln financing through a placing of convertible loan notes.

The financing comprises a senior secured convertible note, which would mature at a premium of 5% if not otherwise converted, 12 months from issue and has interest of 14% to be prepaid in full upon closing of the placing.

The Toronto venture exchange has conditionally approved the placing, the firm said.

Previously, the  firm said funds from the issue will be used on numerous things, including the acquisition of the El Bote processing plant, which will need to be transported piece by piece to a more convenient location. 

The second-hand custom mill is expected to deliver cost savings of some 75% compared to previous toll milling operations.

Proceeds will also be used on the refurbishment of the plant, new ground works at the new site of the mill, as well as expansion of the San Jose mine in Mexico.