Schroders invests $5.9 million in Capitan Silver
Capitan Silver Corp. [CAPT-TSXV] has announced details of a $5.9 million private placement financing that will be used to fund exploration activities at its Cruz de Plata gold-silver project in Mexico. The company says it is now fully funded and is actively drilling at the Cruz de Plata project.
The company said Shroder Investment Management Ltd has agreed to purchase on a non-brokered private placement basis, 2.95 million Capitan shares for $2.03 per share. The private placement, made through the Shroders ISF Global Gold Fund, together with a recently completed $23 million LIFE offering, will result in a combined equity raise of approximately $29 million through the issuance of 14.3 million shares priced at $2.03 per share. The amount raised included the full exercise of the underwriters’ over-allotment option.
The shares were active on the news, easing 0.49% or $0.01 to $2.02. The shares currently trade in a 52-week range of $2.61 and 25 cents.
“The investment by Schroders, a leading global active asset management firm with a strong history of investing in the precious metals, represents a strong validation of our Cruz de Plata silver-gold project and our long-term growth strategy,’’ said Capitan CEO Alberto Orozco.
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.
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