Minaurum is a Mexico-focused explorer which is currently focused on the high-grade Alamos Silver Project in southern Sonora. The company said Red Cloud Securities is acting as sole underwriter and bookrunner.
Under the terms of the financing, each unit will consist of one common share and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one share for 60 cents for two years after the offering closes likely on July 9, 2021.
The company granted the underwriter an option to purchase up to 2.62 additional units at the offering price, potential adding $1.05 million to the proceeds
Minaurum said it intends to use the net proceeds from the financing for the exploration of its mineral projects in Mexico and for general working capital purposes.
The company is engaged in a strategy to build an exploration portfolio with the potential for district-scale gold, silver, and copper discoveries. The 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 km northwest of Pan American Silver Corp.’s [PAAS-TSX, NASDAQ] Alamo Dorado silver mine. Minaurum is exploring an epithermal vein system.
During the first five months of 2021, Minaurum was focused on preparing the Alamos Project for the resumption of a Phase 11 drilling campaign while continuing to advance both the Santa Marta copper-gold volcanogenic massive sulphide (VMS) project and the Aurifero silver-gold project to the drill stage.
Santa Marta is located in the Oaxaca region, while Aurifero is in Sonora.
Phase 2 drilling at Alamos began in July, 2020 and 40 holes were drilled before the program was paused in December, 2020, due to the Covid-19 pandemic. Phase 2 followed a Phase 1 program consisting of 18,810 metres in 40 holes.
With Covid cases dropping, Minaurum has begun mobilizing rigs to the project and anticipates drilling at least a further 15,000 metres.
“We have taken advantage of our Covid-19 recess to refine and refocus our exploration of the more than 26 veins we have identified in this historic camp,” said Minaurum Director Dr. Peter Megaw.
“As we resume drilling, we will be testing a mixture of new veins and follow-up drilling on the mineralized shoots emerging in the veins we’ve already been exploring,” he said.
On June 11, Minaurum shares eased 12.2% or $0.055 to 39.5 cents. The shares are currently trading in a 52-week range of 85 cents and 33.5 cents.