GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GRSLF) said Thursday it has completed a bought deal private placement that raised $9,153,000 to fund resource expansion and drilling at the Plomosas and San Marcial projects in Sinaloa, Mexico.
The company offered 33,900,000 units at $0.27 each. Each unit consisted of one common share and one-half of one common share purchase warrant. Each warrant is exercisable to acquire one common share for $0.40 each for a period of 12 months from the closing date of the offering.
The offering was led by Beacon Securities Limited as lead underwriter and sole bookrunner on behalf of a syndicate of underwriters including Raymond James Ltd, Canaccord Genuity Corp and Pollitt & Co Inc.
READ: GR Silver Mining reports more encouraging high grade drill assays from Plomosas project in Mexico
The offering constituted a related party transaction as First Majestic Silver Corp (TSE:FR (NYSE:AG), an existing major shareholder of the company, subscribed for 4 million units.
All securities issued under and in connection with the offering are subject to a hold period in Canada expiring October 19, 2020.
"With the closing of this oversubscribed bought deal financing, GR Silver Mining now has a solid cash position on its balance sheet, placing the company in a strong position to continue drilling activities in the Plomosas and San Marcial Project,” said GR Silver Mining CEO Marcio Fonseca in a statement.
“The company now intends to bring additional drill rigs to the sites to continue drilling not only on the 6 areas with recent and historical drill holes but also in the multiple targets with evidence of epithermal veins inside both projects. The company has been operating safely in the last 3 months carrying out surface and underground exploration activities at both projects, in accordance with Mexican authorities guidelines, with no impact of the COVID-19 at its operations in Mexico."
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