Zacatecas Silver Enhances Financing Efforts
VANCOUVER, British Columbia — Zacatecas Silver Corp. (TSXV: ZAC; OTC: ZCTSF) has made a notable announcement regarding its private placement financing. The company has chosen to increase its offering from 41,666,666 units to 62,500,000 units, allowing them to raise up to $3.75 million by selling these units at a price of $0.06 each.
Structure of the Offering
Each unit in this placement will consist of one common share and one purchase warrant. These warrants can be exercised at $0.10 per share within two years from when they are issued. The company retains the right to adjust the expiry date of these warrants. If the trading price of the shares reaches $0.20 for 20 consecutive trading days, the expiry may be accelerated. Once the acceleration notice is issued, shareholders will have a 30-day window to exercise their warrants.
Details on Finder's Fees
Zacatecas Silver may also compensate finders for their assistance in this financing, either with cash payments or additional share purchase warrants. All securities issued under this offering will be under a resale restriction for four months from the date of issuance.
Use of Proceeds
The funds raised from this financing will primarily be allocated toward a drilling campaign on the Zacatecas Silver Project, among other strategic initiatives and working capital requirements. This offering is contingent upon the approval of the TSX Venture Exchange, demonstrating the company’s commitment to adhering to regulatory standards.
About Zacatecas Silver Corp.
Zacatecas Silver Corp. focuses on two principal projects: the Esperanza Gold Project and the Zacatecas Silver Project, both aspects play critical roles in the company's growth. The Esperanza Gold Project is noteworthy for its low-cost and low-capital requirements, supported by advanced engineering and a robust stakeholder engagement strategy.
Details of the Esperanza Gold Project
This advanced stage project is located in Morelos State, Mexico. Recent estimates suggest that it contains a Measured and Indicated resource of 30.5 million tonnes at 0.97 g/t AuEq, totaling about 956,000 ounces AuEq, along with an Inferred resource of 8.7 million tonnes at 0.98 g/t AuEq, amounting to approximately 277,000 ounces AuEq.
Insights on the Zacatecas Silver Project
Situated in the prolific Fresnillo silver belt, the Zacatecas Silver Project spans 7,826 hectares across a region known for its significant silver output of over 6.2 billion ounces. This area is rich in both low-sulphidation and intermediate-sulphidation silver base metal mineralization, along with potential gold resources. Notably, a recent resource estimate for the Panuco Deposit revealed 2.7 million tonnes at an impressive 187 grams per tonne silver equivalent, which translates to around 16.4 million ounces AgEq.
Geographical Advantages
Positioned about 25 kilometers southeast of prominent mining operations, including MAG Silver Corp.'s Juanicipio Mine and Fresnillo PLC's Fresnillo Mine, this property is strategically advantageous and shares boundaries with claims from Pan American Silver Corp. and Endeavour Silver's El Orito.
Company Leadership
Eric Vanderleeuw serves as the Chief Executive Officer and Director of Zacatecas Silver Corp. His leadership is pivotal in steering the company's projects and fostering relationships within the industry.
Frequently Asked Questions
What is the purpose of the private placement by Zacatecas Silver?
The private placement aims to raise up to $3.75 million, funding drilling campaigns and other strategic initiatives.
How many units are being offered in the private placement?
The company will offer 62,500,000 units at a price of $0.06 per unit.
What are the terms of the purchase warrants issued in this offering?
Each unit includes a warrant exercisable at $0.10 per share for a period of two years.
What is the significance of the Zacatecas Silver Project?
The Zacatecas Silver Project is situated in a region known for significant historical silver production, providing a promising environment for future exploration and resource development.
Who is leading Zacatecas Silver Corp.?
Eric Vanderleeuw is currently the CEO and plays a crucial role in the company’s operations and strategy.
