Impact Silver raises $3.9 million from upsized financing
Impact silver Corp. [IPT-TSXV, ISVLF-OTC Pink, IKL-FSE] said it has raised $3.9 million from an upsized private placement financing. That’s up from an earlier $3.5 million target.
The company said it received aggregate proceeds of $1.65 million from the issuance of 8.29 million LIFE units at 20 cents per LIFE unit, and $2.27 million from the issuance of 12.6 million units priced at 18 cents per unit. That brought total proceeds to $3.93 million. Each LIFE unit consisted of one common share and one half share purchase warrant, with each whole warrant exercisable for two years at 26 cents per share. Each unit consists of one common share and one warrant, exercisable for three years at 24 cents per common share.
Impact is a successful producer-explorer with two mining projects in Mexico. In the Royal Mines of Zacualpan Silver-Gold District, Impact owns 100% of the 211 square kilometre Zacualpan project where three underground silver mines and one open pit mine feed the central Guadalupe processing plant
Proceeds of the $3.9 million financing will be used to accelerate exploration activity at the Plomosas high-grade zinc-lead-silver property in Chihuahua, and to further develop the company’s prolific silver assets at its legacy Royal mines of Zacualpan Gold district in central Mexico and well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs.
Impact owns 100% of the 211 square kilometre Zaculpan project where four underground silver mines and one open pit mine feed the central 500 tonne per day Guadalupe processing plant. To the south, the Capire Project includes a 200 tonne-per-day processing pilot plant adjacent to an open pit silver mine with an inferred mineral resource of over 4.5 million ounces of silver, 48 million ounces of zinc, and 21 million pounds of lead. Company engineers are reviewing Capire for a potential restart of operations.
Plomosas is a high-grade zinc producer in northern Mexico with exceptional exploration upside potential. The company recently re-commenced operations and has plans for expansion in 2025.
Exploration activities include sampling, target definition, and drilling with the intention of expanding the existing JORC (Joint Ore Reserve Committee) mineral resource at Plomosas, where only 600 metres of the six-kilometre long structure has been tested. The region is known for hosting some of the largest carbonate replacement deposits in the world. As such, the company intends to allocate a portion of the proceeds to continue development and grow production at the Plomosas high-grade zinc deposit as zinc prices continue to outperform on the back of forecasted supply deficits.
On Friday, Impact Silver shares were unchanged at 17.5 cents and trade in a 52-week range of 32 cents and 15.5 cents.