Southern Silver Exploration Corp. ("Southern Silver") plans to issue up to 10,000,000 units ("Units") in a non-brokered private placement at a price of $0.10 per Unit to raise $1,000,000. Each Unit will consist of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of five years at an exercise price of $0.15 per share.
Finders' fees and commissions may be paid by Southern Silver in relation to this issuance. Southern Silver will make provision for an over-allotment option (Greenshoe) to allow a purchase of up to 10% additional Units beyond the number of units in this Offering.
Net proceeds from the private placement will be used to fund costs associated with a three phase exploration program on the Oro property in New Mexico and specifically the sediment-hosted near surface Stock Pond gold target. A USD$300,000 exploration program on the project will include initial phases of prospecting and trenching followed by drilling planned for the fall of 2016.
Southern Silver has consolidated the Oro district over the past several years and the Project consists of patented ground, State leases and BLM claims. Since acquisition, Southern Silver has spent USD$1,163,937 on exploration work on areas of the Project to develop porphyry copper, molybdenum, gold deposits.
Cerro Las Minitas Project
Exploration on the company's flagship Cerro Las Minitas property, Durango Mexico is funded by Electrum Global Holdings L.P. ("Electrum"), which is financing a broad range of exploration activities to earn a 60% interest in the project through a US$5.0M option earn-in on the property, with Southern Silver acting as operator.
The Cerro Las Minitas project contains an estimated Inferred Resource of 17.5Mozs silver and 237Mlbs of lead and 626Milbs zinc (77.3Mozs AgEq) and an estimated Indicated Resource of 10.8Mozs silver, 189Mlbs lead and 207Mlbs zinc (36.5Mozs AgEq).
A total of 87 drill holes for 32,410 metres have now been completed on the Cerro Las Minitas project with exploration expenditures of approx. US$7.5 million spent to date.
The 2016 Exploration program is underway with a drill program focused on targets based on the 2015 drill results which continued to extend the projections of high-grade silver-polymetallic mineralization at both the Blind - El Sol zones and the recent discovery at the Mina La Bocona zone.