Capitan Silver up 23% on upsized financing news
Capitan Silver Corp. [CAPT-TSXV] shares rallied Thursday after the company said it is upsizing a previously announced non-brokered private placement financing, which is now expected to raise $2 million. That’s up from the earlier $1.5 million target.
The shares advanced on the news, rising 23% or $0.03 to 16 cents. The shares currently trade in a 52-week range of 28 cents and 11 cents.
The company said it will now issue up to 13.3 million common shares at an issue price of 15 cents each.
Capitan said it intends to use the proceeds from the private placement to continue to advance the Cruz de Plata gold-silver project in Durango, Mexico, evaluate potential acquisitions as well as to finance working capital and general corporate expenses.
Capitan recently changed its name from Capitan Mining to reflect its primary focus on the recently consolidated silver trend at the Cruz de Plata project.
The Cruz de Plata project includes an oxide gold prospect (referred to as El Capitan) and two historic silver mines (Jesus Maria and San Rafael) located in the historic Penoles Mining District.
Cruz de Plata has an established inferred resource of 305,000 ounces of gold at 0.46 g/t, and 15 million ounces of silver at 62 g/t.
To date, several zones have been identified within a 2.5-kilometre mineralized trend at the Cruz de Plata project, through prospecting, mapping, geophysics, trenching and drilling. The company said the Jesus Maria (JM) Silver Zone is currently the most advanced target, where surface trenching and drilling has confirmed mineralization over a strike length of 1,300 metres and to a depth of 200 metres below surface. The JM zone remains open along strike to the southwest, northeast and down-dip to the south.
The company said the Gully Fault target is an important northeast trending cross-structure that can be traced for at least 1.5 kilometres across the property. “The Gully Faut is significant in that it not only enhances the grade of mineralization at both the Jesus Maria Silver Zone and the Capitan Hill Gold deposit, it also hosts significant high-grade silver mineralization within its boundaries, especially where it intersects the Jesus Maria structure,’’ the company said in a recent press release.
Previously released drilling highlights from the Cruz de Plata Project include hole 21-JMRC-10, which returned 332 g/t silver equivalent (AgEq) over 16.8 metres, including 9.1 metres of 538.7 g/t AgEq, and 2,406.3 g/t AgEq.
The Cruz de Plata project lies in the Altiplano Sub province in the Sierra Madre Occidental, a regionally extensive Eocene and Miocene volcanic field that extends from the U.S.-Mexican border to Central Mexico. It lies in a district that hosts extensive hydrothermal-related silver, gold and base metal deposits and is generally referred to as the Faja de Plata, or Mexican Silver Belt.