Southern Silver Closes $3.0M Non-Brokered Private Placement
Southern Silver Closes $3.0M Non-Brokered
Private Placement
Vancouver, British Columbia--(Newsfile Corp. - June 22, 2021) -
Southern Silver Exploration Corp.
(TSXV: SSV) (the "Company" or "Southern Silver")
has closed the recently announced non-
brokered private placement for 6,000,000 units ("Units") at a price of $0.50 per Unit for gross proceeds
of $3,000,000 ("Non-Brokered Placement"). Each Unit consists of one common share (each a "Unit
Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each
Warrant is exercisable into one common share (each, a "Warrant Share") at a price of C$0.75 at any
time on or before June 21, 2023.
As a result of Southern Silver's completion of the Non-Brokered Placement and the previously
announced bought deal placement ("Bought Deal Placement") (Red Cloud Securities Inc. ("Underwriter")
acted as sole underwriter and bookrunner under the Bought Deal Placement of 18,000,000 units for
gross proceeds of $9,000,000), the Company has now received a gross total of $12,000,000 from the
two offerings (the "Placements").
The net proceeds from the Placements will be used for:
exploration and advancement costs of the Company's Cerro Las Minitas silver-lead-zinc project
located in Durango State, Mexico including a mineral resource update on the project, scheduled
for Q4 2021;
new green fields drilling on the recently acquired El Sol claim (NR-03-20), located adjacent to the
Cerro Las Minitas claims and just 2 kilometres west-northwest of the Mina La Bocona target;
additional exploration drilling on the Company's Oro Cu-Mo-Au Porphyry Project located in
southern New Mexico, scheduled to commence in Q4 2021; and
general working capital purposes.
Relative to the Placements, the Company paid cash commissions to the Underwriter of $630,000 and
issued to the Underwriter 1,260,000 compensation options, with each compensation option exercisable
into one Unit at a price of C$0.50 at any time on or before June 16, 2023. The Company also paid a
cash advisory fee to Fort Capital Partners of $240,000 and issued to Fort Capital Partners 480,000
finder warrants, with each finder warrant exercisable into one common share of the Company at a price
of C$0.50 at any time on or before June 16, 2023 and June 21, 2023 respectively for warrants received
for the Bought Deal Placement and for the Non-Brokered Placement. Additional finders' fees and
commissions may be paid by the Company in relation to the Units sold in the Non-Brokered Placement.
All securities issued in connection with the Bought Deal Placement and the Non-Brokered Placement
respectively bear legends restricting trading of the securities until October 17, 2021 and October 22,
2021. Both Placements are subject to final TSX Venture Exchange acceptance.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Units, nor
was there any sale of the Units in any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The
Units offered will not be, and have not been, registered under the United States Securities Act of 1933,
as amended, and may not be offered or sold within the United States or to, or for the account or benefit
of, a U.S. person.
Cerro Las Minitas Project
The Cerro Las Minitas project is an advanced exploration stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD
project located in southern Durango, Mexico.
Exploration on the project continues with two drills targeting the east side of the Cerro and has now
completed 52 core holes totaling 19,065 metres since restarting drilling in September 2020. Assay
results from 17 drill holes are pending and are anticipated over the coming weeks.
Southern has now tested over 650 metres of strike length along the east side of the Cerro to depths of
up to 500 metres primarily in the South Skarn and Mina La Bocona target areas. Three bonanza grade
mineralized zones have been identified and testing of a potential fourth high-grade zone is nearing
completion all of which will be incorporated into the upcoming mineral resource update on the project.
The CLM Project remains one of the largest undeveloped silver-lead-zinc projects in the world and is
wholly owned, unburdened by royalties, fully financed and fully permitted.
The Cerro Las Minitas project as of May 9th, 2019 contains a Mineral Resource Estimate, at a 175g/t
AgEq cut-off, of
(1)
Indicated - 134Moz AgEq: 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn
Inferred - 138Moz AgEq: 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn
A total of 150 drill holes for 67,375metres have been completed on the CLM Project with exploration
expenditures of approximately US$27.0 million equating to exploration discovery costs of approximately
C$0.09 per AgEq ounce to the end of 2020.
(1) The 2019 Cerro Las Minitas Resource Estimate was prepared following CIM definitions for classification of Mineral Resources. Resources are
constrained using mainly geological constraints and approximate 10g/t AgEq grade shells. The block models are comprised of an array of blocks
measuring 10m x 2m x 10m, with grades for Au, Ag, Cu, Pb, Zn values interpolated using ID3 weighting. Silver and zinc equivalent values were
subsequently calculated from the interpolated block grades. The model is identified at a 175g/t AgEq cut-off, with an indicated resource of
11,102,000 tonnes averaging 105g/t Ag, 0.10g/t Au, 1.2% Pb, 3.7% Zn and 0.16% Cu and an inferred resource of 12,844,000 tonnes averaging
111g/t Ag, 0.07g/t Au, 0.9% Pb, 2.8% Zn and 0.27% Cu. AgEq cut-off values were calculated using average long-term prices of $16.6/oz. silver,
$1,275/oz. gold, $2.75/lb. copper, $1.0/lb. lead and $1.25/lb. zinc. Metal recoveries for the Blind, El Sol and Las Victorias deposits of 91% silver, 25%
gold, 92% lead, 82% zinc and 80% copper and for the Skarn Front deposit of 85% silver, 18% gold, 89% lead, 92% zinc and 84% copper were used
to define the cut-off grades. Base case cut-off grade assumed $75/tonne operating, smelting and sustaining costs. All prices are stated in $USD.
Silver Equivalents were calculated from the interpolated block values using relative recoveries and prices between the component metals and silver
to determine a final AgEq value. The same methodology was used to calculate the ZnEq value. Mineral resources are not mineral reserves until they
have demonstrated economic viability. Mineral resource estimates do not account for a resource's mineability, selectivity, mining loss, or dilution. The
current Resource Estimate was prepared by Garth Kirkham, P.Geo. of Kirkham Geosciences Ltd. who is the Independent Qualified Person
responsible for presentation and review of the Mineral Resource Estimate. All figures are rounded to reflect the relative accuracy of the estimate
and therefore numbers may not appear to add precisely.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an exploration and development company with a focus on the
discovery of world-class mineral deposits. Our specific emphasis is the 100% owned Cerro Las Minitas
silver-lead-zinc project located in the heart of Mexico's Faja de Plata, which hosts multiple world-class
mineral deposits such as Penasquito, San Martin, Naica and Pitarrilla. We have assembled a team of
highly experienced technical, operational and transactional professionals to support our exploration
efforts in developing the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. The
Company engages in the acquisition, exploration and development either directly or through joint-venture
relationships in mineral properties in major jurisdictions. Our property portfolio also includes the Oro
porphyry copper-gold project located in southern New Mexico, USA.
Robert Macdonald, MSc. P.Geo, is a Qualified Person as defined by National Instrument 43-101 and
supervised directly the collection of the data from the CLM Project that is reported in this disclosure and
is responsible for the presentation of the technical information in this disclosure.
On behalf of the Board of Directors
"Lawrence Page"
Lawrence Page, Q.C.
President & Director, Southern Silver Exploration Corp.
For further information, please visit Southern Silver's website at
southernsilverexploration.com
or contact
us at 604.641.2759 or by email at
.
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 contains forward-looking statements. 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. Factors that could cause actual results
to differ materially from those in forward-looking statements include 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.
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