Silver Bull Resources (TSE:SVB)(NYSE MKT:SVBL) says it has now closed a fully subscribed financing, raising US$9.2 million in total proceeds for its Sierra Mojada project in Mexico.
The company sold 22.9 million units at a price of 40 cents each. The silver explorer said the offering was fully subscribed, and its agents partially exercised their over-allotment option.
Each unit is made up of one share, and one half of one share purchase warrant, with each whole warrant good for an additional commone share at a price of 55 cents, for a period of 18 months from the deal's close.
The proceeds of $9.2 million are before deducting commissions to the agents, and other expenses, the company said, adding that the remaining US$0.8 million over-allotment option is exercisable for a period of 30 days.
Silver Bull plans to use the new funds for the preparation of a resource update, metallurgical studies, drilling, and the start of a preliminary economic assessment study at Sierra Mojada, as well as general working capital requirements.
The company said that PI Financial Corp. and Stifel Nicolaus Canada acted as co-lead placement agents for the offering, while Roth Capital Partners was a co-placement agent in the U.S.
Silver Bull has been releasing results from its underground drilling program at its Sierra Mojada property for weeks now, revealing continued high silver and zinc grades.
The underground program twinned what the company calls a historical "long hole" data set along a high grade silver zone and the underlying and adjacent high grade zinc zone - both located at the eastern end of the current resource.
The aim of the total 5,000 metre campaign, which concluded last month, was to increase confidence in the historical long hole data set, which represents 38,000 metres of drilling that was either "severely restricted" or discarded in the company's latest NI 43-101 resource report on the Shallow Silver zone last July.
The company said the program actually amounted to 6,500 metres of drilling, which resulted in the twinning of around 17% of the historic 38,000 metre data set. Silver Bull is awaiting final results, after which it will start a revised resource update on the Shallow Silver and Zinc zones - expected this quarter.
Last month, it released the third of five batches of results from the high grade zinc zone, with the company having also just released the tenth batch of high grade silver holes earlier in January.
Based on the updated resource report figures, the company is aiming to complete the maiden PEA on the Sierra Mojada project in the third quarter of this year.
As of July last year, the Shallow Silver Zone hosted a silver resource of 72.1 million ounces in the measured and indicated category, and 10.4 million ounces in the inferred category.
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