Minaurum doubles silver drilling program in Mexico, shares advance
Minaurum Gold Inc. [MGG-TSXV, MMRGF-OTC, 78M Frankfurt] said Friday it plans to expand the Phase 11 resource-expansion drill program at its Alamos Silver Project in Sonora, Mexico to 50,000 metres from 25,000 metres.
The announcement comes after Minaurum announced plans to increase the size of a previously announced private placement to up to $20 million, up from an earlier $10 million target. The company said the upsized placement will consist of 55.5 million units priced at 36 cents per unit. Each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant will entitle the holder to purchase one common share for 50 cents on the date that is 24 months after closing.
The company has granted the agents an option to sell up to an additional 13.9 million units for additional proceeds of $5.0 million using non-life exemptions. That option can be exercised in whole or in part at any time prior to the closing date.
Minaurum said it intends to use net proceeds for exploration and expenditures and completion of a phase 11 drill program at the Alamos silver project, for property related expenditures and for general working capital.
Minaurum shares advanced on the news, rising 5.9% or $0.02 to 36 cents. The shares are currently trading in a 52-week range of 48 cents and 13 cents.
The company is engaged in a strategy to build an exploration portfolio with the potential for district-scale gold, silver, and copper discoveries. Its projects are located in three key regions: Southern Sonora, Oaxaca, and the Guerrero Gold Belt.
The flagship Alamos Silver, for example, is located in southern Sonora and covers 37,317 hectares in an area located 45 kilometres northwest of Pan American Silver Corp.’s [PAAS-TSX, NASDAQ] Alamo Dorado silver mine. Minaurum is exploring an epithermal vein system.
“Driven by exceptional institutional interest in our ongoing financing, we are excited to announce plans to expand our Phase 11 resource expansion drill program,’’ said Minaurum President and CEO Darrell Rader. “Drilling continues to deliver high-grade silver intercepts, and the enhanced 50,000-metres Phase 11 program positions us to test a great number of vein zone targets and further grow the mineralized footprint, work that will support a major resource update planned for 2026,’’ he said. “The resource update will build on the maiden resource estimate which the company anticipates announcing in early 2026.
The 100%-owned Alamos project contains a wide, high-grade epithermal vein system hosted by Cretaceous limestone. The system produced over 200 million ounces of silver from the time of the first discovery around 1682 to the 1910-20 Mexican Revolution from three separate mines.
Minaurum said it has identified 26 vein zones in an 11 kilometre by 6.0 kilometre region covering one fifth of the property. Thirteen of the nineteen vein zones drilled returned high-grade silver intercepts. Only three of the 13 discoveries will be included in the initial resource estimate.