SilverCrest Metals Inc. [SIL-TSX; SILV-NYSE American] has closed a private placement with SSR Mining Inc. [SSRM-TSX, NASDAQ] under which SSR Mining elected to exercise its equity participation right.
SSR Mining purchased 3,597,291 common shares of SilverCrest at a price of C$7.50 per share for a total investment of C$26,979,682.50. The common shares have a statutory hold period of four months and one day expiring August 25, 2020.
With the closing of the non-brokered private placement offering and exercise by SSR Mining of its equity participation right, SilverCrest is in a robust financial position to advance the high-grade precious metal Las Chispas Project in Sonora, Mexico with a cash balance of C$234 million in its treasury.
In conjunction with closing of the SSR Mining placement, SSR Mining has advised SilverCrest that it has entered into a transaction for resale of the common shares with 2176423 Ontario Ltd., a corporation beneficially controlled by Eric Sprott.
SilverCrest is focused on new discoveries, value‑added acquisitions and targeting production in Mexico’s historic precious metal districts. The company’s current focus is on the high‑grade, historic Las Chispas mining district in Sonora State. The Las Chispas Project, 180 km northeast of Hermosillo, consists of 28 mineral concessions, of which the company has 100% ownership of where all the known mineral resources are located. SilverCrest is the first company to successfully drill‑test the historic Las Chispas Property resulting in numerous high‑grade precious metal discoveries. A Feasibilty Study is currently underway and is planned for completion in the summer of 2020.