Southern Silver Announces Closing of Bought Deal LIFE Private Placement for Gross Proceeds of C$6 Million

Executive Summary

• Southern Silver Exploration Corp. closed its “bought‑deal” private placement, raising gross proceeds of C$6 million, including full exercise of the over‑allotment option.
• The offering consisted of 12 million common shares sold at C$0.50 per share, underwritten by Red Cloud Securities Inc.
• Net proceeds will be used to advance the Cerro Las Minitas project in Durango, Mexico, and for working capital and general corporate purposes.

Key Details

• Offering Size: Gross proceeds of C$6,000,000.
• Shares Issued: 12,000,000 common shares at C$0.50 per share.
• Underwriter/Bookrunner: Red Cloud Securities Inc. (sole underwriter).
• Over‑Allotment: Fully exercised; included in the total gross proceeds.
• Use of Proceeds: Advancement of Cerro Las Minitas silver‑lead‑zinc project, working capital, and general corporate purposes.
• Financing Structure: Private placement exempted under NI 45‑106 (listed issuer financing exemption) for Canadian investors; U.S. securities sold pursuant to U.S. Securities Act exemptions.
• Broker Compensation: Red Cloud received cash fees of C$346,800 plus 693,600 non‑transferable common share purchase warrants (“Broker Warrants”).
• Finder Compensation: Finders paid $5,400 in cash and issued 10,800 non‑transferable common share purchase warrants (“Finder Warrants”).
• Warrant Terms: Each warrant exercisable for one common share at C$0.50 any time before 16 Dec 2028; subject to a hold period expiring 17 Apr 2026.
• Closing Conditions: Subject to final approval by the TSX Venture Exchange.
• Share Liquidity: Shares are freely tradeable in Canada immediately upon issuance to Canadian purchasers.

Notable Quotes

• “The successful closing of this financing provides us with the capital needed to accelerate development at Cerro Las Minitas and strengthens our balance sheet for future growth.” – Lawrence Page, President & Director.