Impact Silver raising $3.5 million for Mexico projects
Impact silver Corp. [IPT-TSXV, ISVLF-OTC Pink, IKL-FSE] has announced a $3.5 million non-brokered private placement financing with a lead order from strategic investors Trafigura PTE Ltd. and Palisades Goldcorp Ltd. [PALI-TSXV].
The private placement will consist of a LIFE (listed issuer financing exemption) offering for $1.75 million, which is being fully allocated to Trafigura and a standard private placement for $1.75 million, of which Palisades is participating for $1.1 million.
Trafigura is a major supplier of vital resources, including non-ferrous and precious metals, as a market leader in the global commodities industry. The company is active in more than 150 countries.
Palisades is a publicly traded investment company with a focus on the junior resource space. Its diversified portfolio includes a 21.64% interest in New Found Gold Corp. [NFG-TSXV]
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.
Impact Silver intends to raise gross proceeds of up to $1.75 million from the sale of up to 8.75 million units at a price of 20 cents per LIFE unit and up to $1.75 million from to sale of up to 9.72 million standard private placement units priced at 18 cents each. Each LIFE unit will consist of one common share and a one-half common share purchase warrant, with each warrant entitling the holder to acquire one common share for 26 cents per warrant share for 24 months from the issue date.
Each standard private placement unit will consist of one common share and one full warrant, each if which entitles the holder to acquire one warrant share for 24 cents for 36 months from the issue date.
Proceeds 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.
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 Wednesday, Impact Silver shares were unchanged at 20 cents and trade in a 52-week range of 33 cents and 15.5 cents.