Southern Silver Exploration (TSXV: SSV) has closed on the purchase of a 60% indirect interest in the Cerro Las Mintas project, bringing its total interest in the project to 100%. The 60% indirect working interest was acquired from Electrum Global Holdings for an aggregate purchase price of US$15 million.
The purchase of the property was settled via the issuance of cash and shares, with US$5 million having been paid in cash, along with the share equivalent of US$2 million in shares once the deposit paid is taken into consideration. An additional US$4 million, equally split between cash and shares, is due March 15, 2021, while the remaining US$4 million must be paid by September 15, 2021, with again an equal split between cash and shares.
The completion of the transaction simplifies the ownership structure of the Cerro Las Mintas project, with Southern Silver now being the sole owner of the property, establishing full control and removing what the company refers to as the “joint venture discount.” The acquisition also increases the attributable resource of minerals held by the company, which now sits at 134 million indicated ounces of silver equivalent, along with 128 million ounces of inferred silver equivalent.
The transaction effectively adds 49.9 million ounces of silver and 1.35 billion pounds of combined lead and zinc to Southern Silver based on the resource estimate of the property, as filed in 2019. To this end, the company also announced that it intends to mobilize a field crew to conduct 10,000 metres of diamond drilling on the property. Mobilization is expected within the next two weeks as a means of expanding the current resource for the property.
Lastly, Southern Silver has indicated that it is fully cashed up, following the closing of three financing activities at $0.20, $0.21, and $0.38, for gross proceeds of $10.0 million, $4.0 million, and $0.5 million, respectively. A total of 70.2 million shares and 35.7 million common share purchase warrants have been issued as a result.
Southern Silver Exploration last traded at $0.63 on the TSX Venture.
Information for this briefing was found via Sedar and Southern Silver Exploration. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses
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