Southern Silver raises $6 million for Mexico project
Southern Silver Exploration Corp. [SSV-TSXV, SSVFF-OTCQX] has raised $6 million from a bought deal LIFE private placement financing and will use the proceeds to advance its Cerro Las Minitas project in Durango, Mexico.
Under the offering, the company sold 12 million common shares for 50 cents each. The amount raised includes the exercise in full of the over-allotment option granted to the underwriter.
Southern Silver shares rose 1.5% or $0.01 to 68 cents. The shares trade in a 52-week range of 72 cents and 17 cents.
Cerro Las Minitas already ranks as one of the largest and high-grade undeveloped silver projects in the world. It is located in a well-established silver mining district, about 79 kilometres to the northeast of the city of Durango. Consisting of 25 concessions covering 34,450 hectares, it lies within the heart of the Faja de Plata (Belt of Silver) of north central Mexico.
The belt is one of the most significant silver producing regions in the world, with current reserves/resources and historic production in excess of 3.0 billion ounces of silver. Major mining operations in the region include Newmont Corp.’s [NEM-NYSE] Penasquito mine.
According to an updated estimate dated March 20, 2024, Cerro Las Minitas hosts an indicated resource of 13.3 million tonnes, averaging 102 g/t silver, 0.07 g/t gold, 0.17% copper, 1.3% lead, and 3.1% zinc, totalling 43.4 million ounces of silver, 32,000 ounces of gold, 49 million pounds of copper, 374 million pounds of lead and 921 million pounds of zinc.
On top of that is an inferred resource of 23.4 million tonnes averaging 111 g/t silver, 0.14 g/t gold, 0.21% copper, 1.1% lead and 2.1% zinc, totaling 83.4 million ounces of silver, 104,000 ounces of gold, 111 million pounds of copper, 582 million pounds of lead, and 1.1 billion pounds of zinc.
Southern Silver previously said it was hoping that by improving the economics at Cerro Las Minitas, it can attract a joint venture partner or a major mining company who is willing to buy the project outright and take it to production.
According to an updated preliminary economic assessment (PEA) announced on June 10, 2024, the project can support a large-scale mining operation with a 17-year mine life and average annual plant feed of 14.3 million ounces of silver equivalent (AgEq), (including 5.8 million ounces of silver) and life-of-mine feed totaling 243.2 million ounces of AgEq. (including 98.6 million ounces of silver).
The company’s property portfolio also includes the Oro porphyry copper-gold project and the Hermanas gold-silver vein project (both located in New Mexico, USA), where permitting applications for the conduct of a drill program are under way.
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