Outcrop closes $5 million private placement with Sprott
Outcrop Silver & Gold Corp [OCG-TSXV, OCGSF-OTCQX, MRG-DE] has raised $5 million from a private placement financing with Eric Sprott. Proceeds are earmarked for the company’s flagship Santa Ana project in Colombia.
The company said the non-brokered private placement offering consisted of 22.7 million units priced a 22 cents per unit. “The company is pleased to advise that [Bay Street financier] Eric Sprott, through 2176423 Ontario Ltd., subscribed for the entire offering,’’ Outcrop said in a press release.
Each unit is composed of one common share and one half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share at an exercise price of 30 cents for 24 months following the closing date of the offering.
Outcrop Silver shares advanced on the news, rising 1.9% or $0.005 to 27 cents. The shares trade in a 52-week range of 31 cents and 12.5 cents.
Following completion of the offering, Sprott beneficially owns 63.7 million shares and 13.36 million warrants, representing 19.3% of the outstanding shares on a non-diluted basis and 22.4% on a partially diluted basis, assuming that the warrants are exercised.
Outcrop Silver is focused on advancing its Santa Ana high-grade silver project in Colombia. The 100%-owned Santa Ana project covers 27,000 hectares within the Mariquita District, through titles and applications, known as the largest and highest-grade primary silver district in Colombia with mining records dating back to 1585.
A maiden resource estimate dated June, 2023, details an estimated indicated resource of 24.2 million ounces of silver equivalent at a grade of 614 g/t and an inferred resource of 13.5 million ounces at a grade of 435 grams per tonne. The company has said the identified resources span seven major vein systems that include multiple parallel veins and ore shoots, including Santa Ana (San Antonia, Roberto Tovar, San Juan shoots; La Porfia (La Ivana); El Dorado (El Dorado, La Abeja, shoots); Paraiso (Megapozo); Las Maras; Los Naranjos, and La Isabela.
The company has said the 2024 drilling campaign aims to extend known mineralization and test new high-potential areas along the permitted section of the project’s extensive 30 kilometres of strike mineralized trend. It said this year’s exploration strategy aims to demonstrate a clear pathway to substantially expand its mineral resources. “These efforts underscore the scalability of Santa Ana and its potential for substantial resource growth, positioning the project to develop into a high grade, economically viable, and environmentally viable and environmentally responsible silver mine,’’ the company said.
The 2024 regional exploration program includes extensive prospecting, mapping, soil sampling and rock sampling to identify new targets. It said this groundwork sets the stage for further detailed trenching and channel sampling and the analysis of existing geophysical data to develop new drill-ready targets.