Zacatecas Silver Corp. Announces an Increase of Previously Announced Financing to $18 Million
Zacatecas Silver Corp. Announces an Increase of
Previously Announced Financing to $18 Million
NOT FOR DISTRIBUTION TO UNIT ED STATES NEWSWIRE SERVICES OR
DISSEMINATION IN THE UNITED STATES
TORONTO, March 04, 2022 (GLOBE NEWSWIRE) -- Zacatecas Silver Corp. (TSXV:ZAC)
(the “ Company ”) is pleased to announce today that, due to strong demand, it has agreed
with Clarus Securities Inc. (“ Clarus ”) as lead agent on behalf of a syndicate of agents
including Eventus Capital Corp., Haywood Securities Inc., and Canaccord Genuity Corp.
(colle ctively, the “ Agents ”), to increase the size of its previously announced C$15,000,700
offering. Pursuant to the upsized deal terms, the Agents have agreed to sell, on a “best
efforts” private placement basis, up to 15,000,000 subscription receipts of the Company (the
“ Subscription Receipts ”) at a price of C$1.10 per Subscription Receipt (the “ Offering
Price ”) for aggregate gross proceeds to the Company of up to C$16,500,000 (the
“ Offering ”). In addition, the Company intends to complete a concurrent non-brokered
private placement offering of 1,364,000 Subscription Receipts on the same terms as the
Offering for gross proceeds of $1,500,400 which brings the total amount of the financing to
$18,000,400.
The proceeds raised from the Offering will be used partially to satisfy the USD$5,000,000
cash consideration in connection with the acquisition of the Esperanza Project from Alamos
Gold Inc., begin advancing the Esperanza Project towards production, fund the ongoing drill
program at the Company’s existing silver project, and general working capital purposes.
The Offering is subject to certain conditions including, but not limited to, the receipt of all
necessary approvals including the acceptance by the TSX Venture Exchange. The securities
to be issued unde r this Offering will be offered by way of private placement exemptions in all
the provinces of Canada, and in the United States on a private placement basis pursuant to
exemptions from the registration requirements of the United States Securities Act of 19 33 ,
as amended.
The securities being offered have not, 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 release does not
constitute an offer for sale of securities in the United States.
Additionally, the Company has granted Clarus, on behalf of the Agents, an a gents’ option
(“ Agents’ Option ”), which will allow the Agents to offer up to an additional 15% of the
Offering on the same terms as the Subscription Receipts. The Agents’ Option may be
exercised in whole or in part at any time prior to the Closing Date o f the Offering. The
Offering is expected to close on or about March 22, 2022.
Abou t Zacatecas Silver
The Zacatecas Silver property is located in Zacatecas State, Mexico, within the highly
prospective Fresnillo Silver Belt, which has produced over 6.2 bill ion ounces of silver. The
company holds 7,826 ha (19,338 acres) of ground that is highly prospective for low and
intermediate sulphidation silver -base metal mineralization and potentially low sulphidation
gold dominant mineralization. On December 15, 2021, Zacatecas announced a mineral
resource estimate at the Panuco Deposit consisting of 2.7 million tonnes at 187 g/t AgEq
(171 g/t Ag and 0.17 g/t Au) for 16.4 million ounces AgEq (15 million ounces silver and 15
thousand ounces gold) (see news release dated December 15, 2021).
The property is 25 km south -east of MAG Silver Corp.'s Juanicipio Mine and Fresnillo PLC's
Fresnillo Mine. The property shares common boundaries with Pan American Silver Corp.
claims and El Orito which is owned by Endeavour Silver.
There are four main high -grade silver target areas within the Zacatecas concessions: the
Panuco Deposit, Muleros, El Cristo and San Manuel -San Gill. The Property also includes El
Oro, El Orito, La Cantera, Monserrat, El Peñón, San Judas and San Juan silver -base metal
vein targets. These targets are relatively unexplored and will be the focus of rapid
reconnaissance.
In addition, Zacatecas Silver Corp. has entered into a share purchase agreement dated Feb.
28, 2022, with Minas De Oro Nacional SA De CV, a subsid iary of Alamos Gold Inc., to
acquire the advanced -stage Esperanza gold project, located in Morelos state, Mexico.
The Esperanza gold project as an attractive low -cost, low -capital -intensity and low -technical -
risk growth project located in Morelos state, Me xico. Alamos has advanced the project
through advanced engineering, including metallurgical work, while also focusing on
stakeholder engagement, including building community relations.
On Behalf of the Company,
Bryan Slusarchuk, Chief Executive Officer and Director
For further infor mation, please contact:
Jonathan Richards, Chief Financial Officer
+1 604 802 4447
www.zacatecassilver.com
Forward -Looking Statements
Information set forth in this news release contains forward -looking statements that are based
on assumptions as of the date of this news release. These statements reflect management’s
current estimates, beliefs, intentions and expectations. They are not guarantees of future
performance. Zacatecas Silver cautions that all forward looking statements are inherently
uncertain and that actual performance may be affected by many material factors, many of
which are beyond their respective control. Such factors include, among other things: risks
and uncertainties relating to Zacatecas Silver’s limited operating history, its proposed
exploration and development activities on is Zacatecas Properties and the need to comply
with environmental and governmental regulations. Accordingly, actual and future events,
conditions and resu lts may differ materially from the estimates, beliefs, intentions and
expectations expressed or implied in the forward -looking information. Except as required
under applicable securities legislation, Zacatecas Silver does not undertake to publicly
update o r revise forward -looking information.
Neither TSX Ventur e Exchang e nor its Regulation Services Provider (as that term is defined
in policies of the TSX Venture Exchange) accept Responsibility for the adequacy or accuracy
of this release