Jupiter Fund taking 9.8% stake in Capitan Silver
Capitan Silver Corp. [CAPT-TSXV] said it has raised $5.3 million from a previously announced private placement financing consisting of 13.2 million units priced at 40 cents per unit.
Capitan intends to use net proceeds of the private placement to fund exploration activities at its Cruz de Plata gold-silver project, additional consolidation opportunities as well as for working capital and general corporate expenses.
The offering was led by a strategic investment from the Jupiter Gold & Silver Fund. Jupiter Asset Management is a leading global asset management firm with assets under management of $90 million. Upon closing, Jupiter will own approximately 9.8% of Capitan’s shares on an undiluted basis. In addition, the company said it has received support from its largest shareholders, including Michael Gentile, CFA, and Construcciones Planificadas.
Under the terms of the financing, each unit consists of one common share and one common share purchase warrant. Each whole warrant will be exercisable to acquire one share for 50 cents for 12 months from the date of issuance, subject to an acceleration plan that is outlined in the company’s press release.
The shares were active on the news, easing $0.02 to $0.02 to 40 cents. The shares currently trade in a 52-week range of 55 cents and 11 cents.
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.
Capitan recently said it has revised its interpretation of mineralized structures at Cruz de Plata based on surface and drill data available to date. The company said significant scale has been identified in several structures which are prospective for future gold and silver discoveries.
Aside from Jesus Maria, key structures identified include Santa Teresa, which features high-grade silver polymetallic mineralization on surface with a potential strike length of 1.8 kilometres. San Rafael North also features high-grade silver mineralization on surface with a potential strike length of 1.3 kilometres.