GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GLYXF) announced Friday that it has increased the size of its previously announced brokered private placement offering to $8 million to accommodate participation by its large existing shareholder First Majestic Silver Corp (TSE:FR) (NYSE:AG).
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.
In a statement, GR Silver said the amended offering, will allow Beacon Securities Limited to purchase 30 million units priced at $0.27 per unit, for gross proceeds of $8,100,000.
Each unit will consist of a share and one-half of a share purchase warrant. Each warrant will be exercisable to acquire a share for a period of 12 months following closing of the offering at an exercise price of $0.40 per share.
GR Silver also granted underwriters the option to purchase an additional 3.9 million units for proceeds of up to $1,053,000.
The offering is expected to close by May 28. All securities issued will be subject to a hold period in Canada expiring four months and one day from the closing date of the offering.
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