Vancouver, British Columbia – (Newsfile Corp. – May 25, 2021) – Southern Silver Exploration Corp. (TSXV: SSV) (OTCQX: SSVFF) (Santiago: SSVCL) (“Southern money“or the”Company“) announces that it has entered into an agreement with Red Cloud Securities Inc. (the”Subscriber“) to act as the sole underwriter and bookrunner for the purchase for resale of 14,000,000 units of the Company (the”Units“) at a price of C $ 0.50 per Unit (the”Unit price“) on a” bought deal “basis in a private placement for gross proceeds of CAN $ 7,000,000 (the”Negotiated Offer“). Each Unit will consist of one ordinary share of the capital of the Company (each being one”Unit share“) and one-half transferable common stock purchase warrant (each entire warrant, a”To guarantee“). Each warrant may be exercised against one common share of the Company (each, one”Share of warrants“) at a price of Cdn $ 0.75 at any time on or before the date that is 24 months after the closing date of the brokerage offering.
In connection with the Brokerage Offer, the Company will sell up to 4,000,000 Units at Unit Price in a Broker-Free Private Placement for additional gross proceeds of up to C $ 2,000,000 (the “Private placement without brokerage“, and collectively with the Brokerage Offer, the”OffersUnits sold in the No Brokerage Private Placement will be identical to those sold in the Brokerage Offer. Fort Capital Partners is acting as financial advisor to the Company in connection with the Offers.
The Units will be offered by way of “accredited investor” and “minimum amount offering” exemptions under National Instrument 45-106 Prospectus Exemptions in all provinces of Canada. Units may also be sold in offshore jurisdictions and in the United States to qualified institutional buyers as defined in Rule 144A under the United States Securities Act of 1933, as amended (the “Law of 1933“), and to accredited investors within the meaning of Rule 501 (a) of Regulation D of the 1933 Act, by way of private placement in accordance with exemptions from the registration requirements of the 1933 Act.
The net proceeds of the offerings will be used for exploration and advancement of the Company’s Cerro Las Minitas silver-lead-zinc project located in Durango State, Mexico, and for general working capital purposes. . Closing of the offerings is expected to occur on or about June 14, 2021 and is subject to obtaining all necessary regulatory and other approvals, including listing of the unit shares and warrants on the TSX Venture Exchange. Unit shares, warrants and shares with warrants will be subject to a hold period of four months and one day from the closing date of the offerings in accordance with applicable Canadian securities laws and may be subject to restrictions on resale in the territory of Canadian buyers.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Units, and there will be no sale of the Units in any jurisdiction where such an offer, solicitation or sale would be illegal prior to ‘registration or qualification. under the securities laws of such jurisdiction. The Offered Units will not be, and have not been, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of a person.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is an exploration and development company focused on the discovery of world-class mineral deposits. Our priority is the 100% owned Cerro Las Minitas silver-lead-zinc project located in the heart of Faja de Plata, Mexico, which hosts several world-class mineral deposits such as Penasquito, Los Gatos, San Martin, Naica and Pitarrilla. . We have assembled a team of highly experienced technical, operational and transactional professionals to support our exploration efforts in developing the Cerro Las Minitas project into a high quality silver-lead-zinc mine. The Company engages in acquisition, exploration and development either directly or through joint venture relationships in mining properties in major jurisdictions. Our real estate portfolio also includes the Oro Porphyry Copper-Gold Project located in southern New Mexico, United States.
On behalf of the board of directors
Lawrence Page, Quebec
President and Director, Southern Silver Exploration Corp.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements. Forward-looking statements relate to future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in these statements. Factors that could cause actual results to differ materially from forward-looking statements include the timing and receipt of government and regulatory approvals, and the continued availability of capital and funding and general economic, market conditions. or business. Southern Silver Exploration Corp. assumes no obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.