- Silver Viper (TSXV:VIPR) is set to raise C$5 million in a private placement led by Eight Capital and Red Cloud Securities
- Up to 13,889,000 units will be offered at a price of $0.36 per unit
- Each unit will consist of one common share in the company and one common share purchase warrant
- As consideration for their services, Eight Capital and Red Cloud Securities will each receive a 6 per cent commission of the gross proceeds
- The funds raised will be used to progress the development of the La Virginia project in Sonora, Mexico
- Silver Viper (VIPR) is currently down 1.23 per cent to $0.40 per share, with a market cap of $23.52 million
Silver Viper (TSXV:VIPR) is set to raise C$5 million in a private placement led by Eight Capital and Red Cloud Securities.
The junior mineral exploration company is currently focused on precious metals exploration in the north-western Mexican state of Sonora.
Under a letter of engagement, Eight Capital and Red Cloud Securities will act as co-lead agents and joint bookrunners, operating on behalf of a syndicate of agents.
A total of 13,889,000 units will be offered on a best efforts basis, at a price of $0.36 per unit. Each of these units will be comprised of one common share in the capital of Silver Viper, as well as one common share purchase warrant.
Each of these warrants will entitle the holder to purchase an additional an additional common share at a price of $0.50, exercisable over a period of 24 months from the date of closing.
Furthermore,, Silver Viper has granted Eight Capital and Red Cloud Securities an over-allotment option to purchase up to an additional 2,778,000, also at a price of $0.36. This option may be either wholly or partially exercised, at any time up to 48 hours from the time of closing.
Should this be the case, an additional $1,000,080 will be raised, for total proceeds of approximately $6 million.
Silver Viper says that the proceeds will be used to fund the development of its wholly owned La Virginia project in Sonora, Mexico, and for working capital and general corporate purposes.
La Virginia is an early-stage exploration property, hosting low-sulphidation epithermal gold-silver mineralization.
As consideration for their services, Eight Capital and Red Cloud Securities will each receive a 6 per cent commission of the total funds raised.
While it remains subject to certain conditions, including the approval of the TSX Venture Exchange and the applicable regulatory authorities, the placement is expected to close June 3 this year.
Silver Viper (VIPR) is currently down 1.23 per cent to $0.40 per share at 1:03pm EDT.