Southern Silver Exploration Corp. (CVE:SSV) said Monday that it has closed the first tranche of its private placement offering by issuing 6.63 million units at a price of 10 cents each for proceeds of $662,700.
The company said that each unit consists of one common share and one share purchase warrant, exercisable to purchase one additional common share for a period of three years at a price of 17 cents per share.
In early April, the company announced revised plans to issue up to 20 million units at a price of $0.12 to $0.10 each, for gross proceeds of $2.0 million.
The new funds from the first tranche of the offering will be used for exploration and property maintenance expenses incurred on Southern's Cerro Las Minitas project in Mexico, and the Oro gold-silver-copper project in New Mexico, USA, where a 20,000 metre drill program is currently underway.
In early April, Southern unveiled drilling results that extend high grade silver-polymetallic mineralization at the Blind and El Sol zones on the Cerro Las Minitas project in Durango State, Mexico.
At the El Sol zone, drilling returned a 26.1 metre interval averaging 67 grams per tonne (g/t) silver, 2.8% lead, and 3.3% zinc, or 239 g/t silver equivalent, including 1.8 metres at 163 g/t silver, 6.9% lead and 8.8% zinc, or 619 g/t silver equivalent in hole 12CLM-044.
Meanwhile, at the Blind zone, drilling continues to delineate both the lateral extent and internal continuity of the mineralized zone, the company said.
Results from the northwest extension of the zone include 4.6 metres averaging 146 g/t silver, 3.0% lead and 2.8% zinc, or 472 g/t silver equivalent, from hole 12CLM-041; and 4.2 metres of 145 g/t silver, 2.7% lead and 2.0% zinc, or 305 g/t silver equivalent, from hole 12CLM-043.
The silver miner has scheduled 20,000 metres of core drilling in 2012 at the property, with the aim of completing an NI 43-101 compliant resource on these first set of targets by the fourth quarter.
The property comprises 18 concessions that total 15,125 hectares and an approximate 25 kilometre strike length.
Southern Silver is a precious and base metal exploration company. It aims to acquire, explore and develop properties in progressive jurisdictions within North America.
Its current projects include the silver-lead-zinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca project in Mexico, the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver Oro project in New Mexico.