Zacatecas Silver Corp. (TSX-V:ZAC, OTC:ZCTSF) has raised just over C$2.3 million in the first tranche of a private placement that will help fund exploration at its silver and gold assets in Mexico.
The Vancouver-based miner said it issued 38.4 million new units at 6 cents apiece, each consisting of one share and a warrant giving investors the right to buy more shares at 10 cents over the next two years.
If the stock trades above 20 cents for 20 consecutive trading days, the company can force an early expiry on the warrants by giving 30 days’ notice.
The first tranche brought in gross proceeds of C$2.31 million. Zacatecas said it expects to close the final portion of the raise by the end of September.
The money will be used to support drilling at the company’s flagship Zacatecas Silver Project in central Mexico, as well as to advance corporate strategy and bolster general working capital.
Zacatecas Silver is developing two projects in Mexico. Its namesake silver asset lies within the prolific Fresnillo belt, a region responsible for more than 6 billion ounces of historical silver production.
The company owns nearly 8,000 hectares of prospective ground, including the Panuco deposit, which hosts 16.4 million ounces of silver equivalent resources at an average grade of 187 grams per tonne.
It also owns the Esperanza gold project in Morelos State, a low-cost development asset previously advanced by Alamos Gold. Esperanza holds a measured and indicated resource of 956,000 gold-equivalent ounces, plus a further 277,000 ounces inferred.