Zacatecas Silver Announces Closing of Over-Subscribed Financing and Outlines Path Forward

Executive Summary

• Zacatecas Silver Corp. closed an oversubscribed non‑brokered private placement of 62,500,000 units at C$0.06 per unit, raising gross proceeds of C$3.75 million.
• The financing was upsized to include a strategic order from a prominent global mining investment fund, underscoring market confidence in the company’s high‑grade silver and gold assets in Mexico.
• Net proceeds will fund a 4,000‑metre drill program targeting the El Cristo and Panuco vein systems, community engagement activities, corporate purposes, and working capital.

Key Details

• Units sold: 62,500,000 (each unit = 1 common share + 1 warrant).
• Price per unit: C$0.06 → Gross proceeds: C$3.75 million.
• Warrant terms: Exercise price $0.10 per share; exercisable for two years from issue. Acceleration clause triggers if VWAP ≥ $0.20 for 20 consecutive trading days, moving expiry to 30 days after acceleration notice.
• Finders’ fees (first tranche): $117,417.33 paid; 1,962,955 non‑transferable finders warrants issued (2‑year term).
• Resale restrictions: Securities from the first tranche restricted from resale for four months post‑issue.
• Insider participation: Insiders subscribed for 1,000,000 units ($60,000), qualifying as a related‑party transaction but exempt from formal valuation/approval under MI 61‑101 (below 25% market cap).
• Use of proceeds:
• Advance exploration – 4,000 m drill program at flagship Zacatecas Silver Project.
• Community engagement and environmental/social services via MES partnership.
• Corporate purposes and working capital.
• Drill program details: Preparation underway; anticipated start in coming months; focus on:
• El Cristo vein system – testing a large, underexplored structure linked to historic Veta Grande ( >200 Moz Ag historically).
• Panuco North vein system – follow‑up on high‑grade intercepts and the updated resource of 20.5 Moz AgEq (19 Moz Ag & 19.2 Koz Au; 3.41 Mt @ 187 g/t AgEq).
• Pipeline growth: Ongoing review of additional acquisition opportunities in Mexico to broaden project portfolio.
• Community & infrastructure: Surface access agreements supported by MES; roadwork and drill‑pad construction complete; contractor mobilization slated for late Q4 2025.
• Esperanza Gold Project update (CEO comment): Project remains a low‑CAPEX, high‑grade oxide heap‑leach asset; PEA activities paused due to permitting headwinds but project preserved at minimal cost, retaining optionality.

Notable Quotes

“This marks a pivotal step in our aggressive growth strategy focused on unlocking the full potential of the El Cristo and Panuco vein systems—two high‑priority, high‑impact targets in one of Mexico’s most prolific silver districts.” – Eric Vanderleeuw, CEO & Director

All technical information reviewed by Chris Wilson, COO (Qualified Person under NI 43‑101).