Southern Silver Announces Bought Deal LIFE Private Placement for Gross Proceeds of C$5.0 Million

The most recent news release on December 2, 2025, announced that Southern Silver Exploration Corp. has entered into a bought deal private placement (LIFE exemption) to raise gross proceeds of C$5.0 million. The company will issue 10,000,000 common shares at a price of C$0.50 per share. The proceeds are intended for the advancement of the Cerro Las Minitas project, working capital, and general corporate purposes. Red Cloud Securities Inc. is acting as the agent.

This financing follows closely on the heels of a highly positive drilling update from December 1, 2025, where the company reported bonanza-grade silver intercepts from initial drilling on the newly acquired Puro Corazon claim, part of the Cerro Las Minitas project. Key intercepts included 10.5 metres averaging 1,115g/t AgEq in hole 25CLM-203. The Vice President of Exploration noted that approximately 40% of the planned 12,000-metre drilling program is complete, with expectations for more positive results through Q1 2026. The company plans to incorporate these results into an updated Mineral Resource Estimate and Preliminary Economic Assessment (PEA) targeted after Q1 2026 assays.

Earlier news (October 2025) provided corporate updates, including the appointment of a new director and stock option grants. It also detailed the initiation of the 12,000-metre drill program at Puro Corazon, emphasizing the strategic importance of this newly acquired nine-hectare claim for unlocking capital and operating synergies for the Cerro Las Minitas project, with the updated PEA scheduled for Q1 2026.

The company secured C$15.0 million through a bought deal private placement in July 2025, issuing 55,555,557 units at C$0.27 per unit (each comprising one common share and one-half warrant exercisable at C$0.40 for three years). Prior to that, in February 2025, Southern Silver closed a C$3.58 million non-brokered private placement at C$0.18 per unit, with units including common shares and half-warrants at C$0.28 for three years. These financings were primarily for the advancement of the Cerro Las Minitas project, working capital, and the exploration of the newly optioned Nazas property.

The most recent news of a C$5.0 million bought deal private placement is a Routine - Positive development for Southern Silver Exploration Corp.

1. Capital Infusion at Favorable Terms: The financing secures additional capital for the company's ongoing exploration and development activities, particularly for the flagship Cerro Las Minitas project. Crucially, this offering is priced at C$0.50 per share, which is a significant increase compared to previous financings at C$0.27 (July 2025) and C$0.18 (February 2025). This higher pricing reflects the positive market sentiment generated by the recent bonanza-grade drill results announced the day prior (C$0.54 close on Dec 1). Securing funds at an improved valuation is a positive indicator of investor confidence.
2. Strategic Timing: The timing of this financing, immediately following a highly encouraging drill result, allows the company to capitalize on positive momentum and replenish its treasury efficiently. This enables continued funding of the 12,000-metre drill program at Puro Corazon, which is only 40% complete, and other de-risking activities.
3. Dilution Management: The issuance of 10,000,000 common shares will result in approximately 2.5% dilution to the current share count (post July 2025 financing). While any share issuance is dilutive, this is a relatively small percentage for a C$5.0 million raise, especially given the substantially increased share price compared to prior financings. It does not include additional warrants, which helps manage future dilution risk from new derivatives.
4. Advancement of Key Projects: The stated use of proceeds for the advancement of Cerro Las Minitas, working capital, and general corporate purposes directly supports the company's strategic goals of completing the current drill program, updating the MRE and PEA, and de-risking the project. This aligns with the company's previously communicated plans.

Overall, this financing, while routine in nature, is executed under very favorable conditions due to the strong preceding exploration news. It provides a necessary capital boost, validates the company's recent technical success, and supports its ongoing development plans without overly burdensome dilution.

Southern Silver Exploration Corp. is a Canada-based junior exploration company focused on the discovery and development of silver-lead-zinc deposits in North America.

Flagship Project: Cerro Las Minitas (CLM) Project, Durango, Mexico * Location: Southeastern Durango, Mexico, a well-known mining-friendly jurisdiction. * Commodities: Silver, lead, zinc, with significant gold and copper byproducts. * Stage: Resource stage, with a Preliminary Economic Assessment (PEA) completed in July 2024 that outlined a robust large-scale underground mining operation. * Recent Developments: * Puro Corazon Acquisition: In September 2025, Southern Silver acquired the contiguous 9-hectare Puro Corazon mining claim, which is being privately operated at approximately 60 tonnes of ore per day, producing silver-lead and zinc concentrates. The acquisition is strategic, aimed at unlocking significant capital and operating synergies, enhancing mine plan sequencing, and improving overall project economics by providing faster access to high-grade, near-surface mineralization. * Drill Program: A 12,000-metre core drilling program commenced at Puro Corazon in October 2025. Initial results in December 2025 confirmed bonanza-grade silver mineralization, including 10.5 metres averaging 1,115g/t AgEq. * Derisking & Studies: The company is advancing baseline data collection, including hydrology, geotechnical studies, archaeological surveys, and land surveys, to de-risk and advance the project. * Future Milestones: An updated Mineral Resource Estimate and a new PEA for the combined Cerro Las Minitas and Puro Corazon project are targeted after Q1 2026.

Other Projects: * Nazas Project, Durango, Mexico: An option agreement was entered in February 2025 to acquire a 100% interest in five claims totaling 2,189 hectares. This exploration project is prospective for silver, gold, lead, and zinc, with historical drilling and geophysical data. Planned drilling was initially set for Q3 2025. * Oro Porphyry Copper-Gold Project, Southern New Mexico, USA. * Hermanas Gold-Silver Vein Project, Southern New Mexico, USA.