Southern Silver Reports on Equity Raise and Announces Additional C$4 Million Equity Raise
Southern Silver Reports on Equity Raise and
Announces Additional C$4 Million Equity
Raise
Vancouver, British Columbia--(Newsfile Corp. - July 28, 2020) - Southern Silver Exploration Corp.
("
Southern Silver
" or the "
Company
") reports that the previously announced brokered offering of
subscription receipts (the "Subscription Receipts") to be issued at the price of C$0.20 per Subscription
Receipt, has been fully subscribed for aggregate gross proceeds of C$10,000,000 and it is anticipated
to close on or about July 31, 2020.
In conjunction with a previously announced Transaction (as defined below) to acquire an additional 60%
indirect working interest (for a 100% indirect ownership) in the Company's flagship Cerro Las Minitas
project and the previously announced brokered offering of Subscription Receipts, the Company plans to
now issue an additional 19,047,620 subscription receipts of the Company (the "
Additional
Subscription Receipts
") on a non-brokered private placement basis at the price of C$0.21 per
Additional Subscription Receipt for gross proceeds of up to C$4,000,000 (the "
Offering
"). Each
Additional Subscription Receipt shall be exchangeable, for no additional consideration, into one unit of
the Company (each, a "
Unit
") upon satisfaction of certain escrow release conditions (the "
Escrow
Release Conditions
"). Each Unit will consist of one common share and one-half of one share purchase
warrant, with each full warrant exercisable to purchase one additional common share at a price of
C$0.28 during the first year, increasing to C$0.33 in year two and C$0.38 in year three following the
closing date of the Offering (the "
Closing Date
"). The Additional Subscription Receipts will otherwise be
identical to the Subscription Receipts to be issued under the brokered offering of Subscription Receipts.
The net proceeds raised under the Offering will be used to fund the cash payment for the Transaction
and for general working capital purposes.
The common shares and warrants issuable upon satisfaction of the Escrow Release Conditions will be
subject to certain resale restrictions, including a restricted (or "hold") period of four months and one day
following the Closing Date, under applicable Canadian securities legislation, and any securities issued
to U.S. purchasers will be "restricted securities" as defined in Rule 144 of the U.S. Securities Act.
Purchasers are advised to consult their own legal advisors in this regard.
The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary
approvals of the TSX Venture Exchange. Finders' fees may be paid by Southern Silver in relation to this
Offering.
Transaction
The Company has entered into a definitive agreement with Electrum Global Holdings L.P. ("
Electrum
")
to acquire Electrum's 60% ownership interest in Southern Silver Holdings Limited ("
SSHL
") for current
and future cash and share payments totaling US$15.0 million (the "
Transaction
"). SSHL is a holding
company that wholly owns Minera Plata del Sur S.A. de C.V. ("
MPS
"). MPS holds title to the Cerro Las
Minitas property in Durango State, Mexico. The Company shall use its commercially reasonable efforts
to complete the Transaction. The conditions of the closing of the Transaction are as follows:
i.
on the closing date of the Transaction, the payment by the Company to Electrum of US$5,000,000 in
cash and the issue and delivery of US$2,000,000 (adjusted by a credit of C$1,350,000 paid on
execution of the definitive agreement), in common shares of the Company;
ii.
receipt of the approval of the Company's shareholders; and
iii.
receipt of all required approvals from the TSX Venture Exchange as well as all other relevant
regulatory bodies.
The securities referred to in this news release have not been, nor will they be, 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, U.S. persons absent U.S. registration or an
applicable exemption from the U.S. registration requirements.
This news release does not
constitute an offer for sale of securities for sale, nor a solicitation for offers to buy any
securities.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious metal exploration and development company with a
focus on the discovery of world-class mineral deposits in north-central Mexico and the southern USA.
Our specific emphasis is the 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 and
Los Gatos. We have assembled a team of highly experienced technical, operational and transactional
professionals to support our exploration efforts with the objective of developing the Cerro Las Minitas
project into a premier, 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.
The Oro property consists of
patented land, State leases and BLM located mineral claims which cover a highly prospective quartz-
sericite-pyrite alteration zone, interpreted to overlie an unexposed porphyry centre and distal sediment-
hosted, oxide-gold target.
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 may contain forward-looking statements, including statements regarding the
closing of the Offering and the Transaction. 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.
This news release is not intended for distribution to United States newswire services or
dissemination in the United States.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/60646