Southern Silver Exploration (CVE:SSV) reported Monday that it plans to raise $3 million through a non-brokered private placement financing.
The Vancouver-based silver explorer intends to issue up to 17.65 million units at a price of $0.17 per unit.
Each unit will consist of one common share and one half share purchase warrant, with whole warrant exercisable to purchase one additional common share for a period of two years, at a price of $0.22 each for the first year, and $0.27 for the remaining year.
The company said that proceeds from the private placement, which is subject to regulatory approvals, will be used for exploration and property maintenance expenses incurred on the Cerro Las Minitas and Minas de Ameca projects in Mexico, as well as the Oro project in the US.
Specifically, the company plans to expand its current exploration program on its Cerro Las Minitas project in Mexico to develop mineralization identified though geophysical surveys and diamond drilling.
The proposed expanded campaign is to consist of up to 10,000 metres of diamond drilling in up to 30 drill holes, designed to test high-grade targets in a +40 metre thick skarn horizon. Additional drill holes will test for high-grade silver veins, under gravel cover, the company said.