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GR Silver Mining completes $9.1 million bought deal private placement

The money will fund resource expansion and drilling at the Plomosas and San Marcial projects in Sinaloa, Mexico

GR Silver Mining - GR Silver Mining Ltd completes 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

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."

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

 

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Price: 0.76 CAD

TSX-V:GRSL
Market: TSX-V
Market Cap: $92.67 m
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GR Silver Mining hits high-grade mineralization in drilling at the Plomosas...

GR Silver Mining (CVE: GRSL-OTCQB: GRSLF) CEO Marcio Fonseca joined Steve Darling from Proactive Vancouver with news about the recent drilling at their Plomosas project in Mexico. Fonseca gave us the numbers and also talked about the current drilling program and the fact they plan to get...

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