- Southern Silver (TSXV:SSV) has executed an agreement with Electrum Global Holdings to purchase the remaining 60 per cent stake in the Cerro Las Minitas Project
- Cerro Las Minitas is Southern Silver’s flagship project, and, once the deal finalises, the company will own a 100 per cent interest in the property
- In exchange the Southern Silver will pay C$20.32 million in cash and common shares
- To fund the purchase Southern Silver is issuing a private placement valued at $7 million
- Southern Silver (SSV) is down two per cent and is trading at $0.20 per share
Southern Silver (TSXV:SSV) has executed an agreement with Electrum Global to purchase the remaining stake in the Cerro Las Minitas Project.
Cerro Las Minitas is Southern Silver’s flagship project, and, once the deal finalises, the company will own a 100 per cent interest in the property.
In exchange the Southern Silver will pay C$20.32 million in cash and common shares. Initially, the company will pay Electrum approximately $6.77 million in cash and $2.79 million in shares when the deal closes on September 9.
Another $2.79 million in cash and $2.79 million in stock option will be paid six months from the initial payment and a further at $2.79 million in cash and $2.29 million in stock options will follow after a further six months.
Thus far, the Cerro Las Minitas project has had an approximate $25 million of exploration work completed on it, including 133 drill holes for 59,000 metres of work.
So far, the company has increased the resource size at the property 150 per cent. This amounts to 134 million ounces of silver equivalent in attributable resources and 138 million ounces of inferred resources.
The company hopes the transaction will strengthen its hold of one of the largest and highest grade, undeveloped silver projects in the world.
In order to fund the purchase, Southern Silver has announced a capital raise for a minimum of $7 million.
The raise will sell 35 million units, consisting of one common share at 25 cents per share along with a warrant for a further share at 30 cents.
Southern Silver (SSV) is down two per cent and is trading at $0.20 per share at 10:25 pm EDT.