The Vancouver-based, Mexico-focused company owns its flagship Plomosas silver project in the Rosario Mining District of Sinaloa state.
The firm said it plans to use the proceeds of the financing for working capital and general corporate purposes.
READ: GR Silver Mining's recent exploration at San Marcial underscores potential to increase gold and silver resource
Under the terms of the offering, underwriters led by Beacon Securities Limited agreed to purchase 26 million units priced at $0.27 per unit for total gross proceeds of $6,021,000. Each unit consists of one share and one-half of one warrant exercisable at $0.40 for a 12-month period following closing.
GR Silver also granted underwriters the option to purchase an additional 3.9 million units for proceeds of up to $1,053,000.
In connection with the offering, the underwriters will receive a cash commission of 7% of gross proceeds, excluding up to a maximum of $1 million gross proceeds from the issuance of units to persons identified by the company pursuant to a President's List for which a commission of 4% of such gross proceeds is payable by the company to the underwriters.
The underwriters will also receive compensation options equal to 7% of the aggregate number of units sold excluding those connected with the President’s List and 4% of the number of units sold in connection with the President’s List. Each compensation option is exercisable into one share of GR Silver at the issue price for a 12-month period following closing.
The offering is expected to close by May 28.
--Updated with revised financing figures--
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