Southern Silver Closes First Tranche of Private Placement
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/27/10 -- Southern Silver Exploration Corp. (TSX VENTURE: SSV)(FRANKFURT: SEG) has closed the first tranche of its previously announced non-brokered unit private placement by issuing 9,900,000 units at a price of $0.10 per unit for gross proceeds of $990,000. Each unit consisted of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share at a price of $0.20 per share for a period of two years.
Finders' fees are payable. The private placement and finders' fees are subject to regulatory approval. All securities issued pursuant to the private placement, including common shares, share purchase warrants and finders' warrants issued as finders' fees, carry a legend restricting trading of the securities until February 28, 2011.
The proceeds from the private placement will be utilized to fund exploration projects on the Oro, Cerro Las Minitas and San Luis properties as well as for working capital. Mapping and preparation for a geophysical survey are presently underway at Cerro Las Minitas and a contract has been executed for the conduct of an airborne geophysical survey at Oro to be commenced approximately November 1, 2010 with diamond drilling on both properties to follow results of the geophysical surveys.
It is expected that the second tranche of the $2 million private placement will close on or about November 12, 2010.
On behalf of the Board of Directors
Lawrence Page, President, Southern Silver Exploration Corp.
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.
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.
Contacts:
Southern Silver Exploration Corp.
Liana Shahinian
1-888-456-1112 / 604-641-2773
liana@mnxltd.com
southernsilverexploration.com