Business
Southern Silver Closes Transaction to Acquire 100% Interest in the Cerro Las Minitas Silver Project; Closes Three Private Placements for Proceeds of $14.456 Million
Vancouver, British Columbia--(Newsfile Corp. - September 16, 2020) - Southern Silver Explorat...
About this update from Southern Silver Exploration Corp.
[{"type":"text","content":"Southern Silver Closes Transaction to Acquire 100% Interest in the Cerro Las Minitas Silver Project; Closes Three Private Placements for Proceeds of $14.456 MillionVancouver, British Columbia--(Newsfile Corp. - September 16, 2020) - Southern Silver Exploration Corp. (TSXV: SSV) (the \"Company\" or \"Southern Silver\") reported that it has closed the transaction with Electrum Global Holdings L.P. (\"Electrum\") to acquire Electrum's 60% indirect working interest (for a total 100% interest) in the Cerro Las Minitas project (the \"CLM Project\") located in Durango, Mexico (the \"Transaction\"). As consideration for the acquisition, Southern Silver must pay Electrum an aggregate US$15 million in a combination of cash and common shares, of which US$5 million and 2,336,590 common shares (valued at US$1,006,403 which, together with a credit of C$1,350,000 deposit paid, represents the US$2,000,000 share equivalent payment) have now been paid. The remaining consideration must be paid on or before: March 15, 2021: US$2 million and common shares equal to US$2 million (based on the greater of the 20-day volume weighted average trading price of Southern Silver's shares on the TSX Venture Exchange (\"VWAP\") and the Discounted Market Price (as that term is defined in the policies of the TSX Venture Exchange) of the shares (the \"DMP\")); andSeptember 15, 2021: US$2 million and common shares equal to US$2 million (based on the greater of the prior 20-day VWAP and the DMP).The Company has the option to pay all cash in lieu of shares. To secure above noted payments, the Company has pledged to Electrum the shares representing Electrum's 60% indirect working interest in the CLM Project. Southern Silver has received both shareholder and TSX Venture Exchange approval of the Transaction. Benefits to Southern Silver Shareholders:Simplifies ownership structure of the CLM Project Establishes full control over project timeline and removes perceived joint venture discountProvides 100% ownership of a premier, polymetallic deposit in Mexico with substantial resource growth potential (with a focus on targeting high grade silver targets)150% increase in attributable resources to current resource of Indicated: 134Mozs AgEq and Inferred: 138Mozs AgEq (1) Highly accretive to Southern Silver shareholdersElectrum remains a supportive cornerstone investor Southern ...