Southern Silver Exploration Corp. has now closed the second tranche of the previously announced private placement (NR-06-09, Nov. 24, 09) consisting of 3,590,000 million units for proceeds of C$359,000. The company announced on December 10, 2009 (NR-07-09) that it had closed the first tranche of the private placement respecting 14,570,000 units aggregating C$1,457,000.
The private placement was oversubscribed and the company issued a total of 18.16 million units for total gross proceeds of C$1,816,000.
Each unit is priced at C$0.10 and consists of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share at an exercise price of C$0.20 per share for a period of two years.
The proceeds from the private placement will be used to fund planned drill programs on the company’s mineral exploration projects in New Mexico and Mexico as well as for working capital. Finder’s fees are payable. The private placement and finder’s fees are subject to regulatory approval. All securities issued pursuant to the first tranche closing of this private placement, including common shares, share purchase warrants and finders’ warrants issued as finders’ fees, carry a legend restricting trading of the securities until April 25, 2010.
Accelerated share purchase warrants which expired on December 23, 2009 were exercised to purchase approximately 3,600,000 common shares for proceeds of $360,000.