Southern Silver Announces Equity Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 16, 2016) -
NOT FOR DISTRIBUTION TO UNITED STATES WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Southern Silver Exploration Corp. ("Southern Silver") (TSX VENTURE:SSV)(FRANKFURT:SEG1)(SSE:SSVCL) plans to issue up to 12,000,000 units ("Units") in a non-brokered private placement at a price of $0.05 per Unit to raise $600,000. Each Unit will consist of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of five years at an exercise price of $0.08 per share.
Southern Silver has arranged an initial subscription from Electrum Global Holdings L.P. ("Electrum") to purchase 6,000,000 units.
Exploration on the company's flagship Cerro Las Minitas property, Durango Mexico is funded by Electrum through a US$5.0M option on the property, with Southern Silver acting as operator.
Final results of the US$2.0M, 2015 program are currently being reviewed in preparation for the 2016 exploration program on the property. These results continue to extend the projections of high-grade silver- polymetallic mineralization at both the Blind - El Sol zones and the recent discovery at the Mina La Bocona zone.
A total of 87 drill holes for 32,410 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approx. US$7.5 million spent to date.
Net proceeds from the private placement will be used for working capital and costs associated with claim maintenance, permitting and other exploration expenses. Specifically, some proceeds will be applied towards the assessment of the Oro property in New Mexico. Surface exploration consisting of prospecting and trenching is planned to resolve targeting prior to permitting the next phase of drilling on the project.
Finders' fees and commissions may be paid by Southern Silver in relation to this Offering (not including the units sold to Electrum). Southern Silver will make provision for an over-allotment option (Greenshoe) to allow a purchase of up to 10% additional units beyond the number of units in this Offering.
On behalf of the Board of Directors
Lawrence Page, Q.C., President, Southern Silver Exploration Corp.
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 may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. 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. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding 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 market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Southern Silver Exploration Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Contact
Southern Silver Exploration Corp.
Jay Oness
604-641-2759
JOness@mnxltd.com
www.southernsilverexploration.com