Zacatecas Silver Corp. (TSX-V:ZAC, OTC:ZCTSF) announced the closing of its over-subscribed, non-brokered private placement financing of 62.5 million company units, at a price of C$0.06 per unit, for total gross proceeds of C$3.75 million.
The precious metals projects developer said the financing was previously upsized from C$2.5 million to C$3.75 million in order to include a strategic order from a highly regarded global mining investment fund, underscoring confidence in the company’s high-grade silver and gold portfolio in Mexico.
Net proceeds of the financing will be used to advance exploration activities, including drilling at the company’s flagship Zacatecas Silver Project, as well as for community engagement initiatives, corporate purposes, and working capital.
Each unit of the offering consists of one company common share plus one common share purchase warrant, with each warrant exercisable at C$0.10 per share for a period of two years from the date of issue.
Zacatecas noted that company insiders subscribed for one million units of the private placement for total proceeds of C$60,000.
Under the first tranche of the private placement, the company paid finders fees of C$117,417.33 and issued 1,962,955 non-transferable finders share purchase warrants exercisable for a period of two years from the date of issue.
As well, Zacatecas Silver reported that a 4,000-metre drill program is currently in preparation stages and is expected to begin in the coming months.
Drilling will focus on high-priority targets at both the El Cristo and Panuco North vein systems.
At El Cristo, drilling will test a large, underexplored vein system geologically linked to the prolific Veta Grande system, where historic mining produced more than 200 million ounces of silver.
At Panuco, drilling follows up on strong high-grade results and the updated resource estimate of 20.5 million silver equivalent ounces.
“This marks a pivotal step in our aggressive growth strategy focused on unlocking the full potential of the El Cristo and Panuco vein systems—two high-priority, high-impact targets in one of Mexico’s most prolific silver districts,” Zacatecas Silver CEO Eric Vanderleeuw said in a statement.
“Today, Zacatecas Silver is revitalized and fully funded to aggressively advance drilling in what appears to be the early innings of a historic metals market.”
The company also stated that it continues to actively evaluate acquisition and consolidation opportunities in Mexico to strengthen and diversify its project pipeline.