Sierra Madre Gold & Silver (SM.V) and Southern Silver Exploration (SSV.V) are taking advantage of the strong silver price to fill up their respective treasuries.
Sierra Madre is raising C$16.5M in a financing priced at C$0.70 per unit. Each unit consists of one common share and half a warrant with each full warrant allowing the warrant holder to acquire an additional share for C$0.85 during a one-year period. The company will use the proceeds from this financing to increase the capacity of the La Guitarra mine and the recent upsize of the financing (from the initially announced C$10M) will likely also allow for a substantial drill program. We will catch up with CEO Alexander Langer in the near future.
Southern Silver initially arranged a C$8M bought deal which was subsequently upsized to C$13M. Units are sold at C$0.27 and consist of one common share and half a warrant with each full warrant allowing the warrant holder to acquire an additional share for C$0.40 during a three year period.
Both companies aim to close their offerings in the next 7-10 days.
Disclosure: The author has a long position in both Sierra Madre Gold & Silver and Southern Silver. Both companies are a sponsor of the website. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
