Santacruz Silver Mining (TSXV: SCZ) plans to raise up to C$6 million through a non-brokered private placement of approximately 27.27 million units at C$0.22 per unit.
Palisades Goldcorp, Canada’s leading resource-focused merchant bank, has placed a lead order for C$3 million under the placement.
Each unit will consist of one common share of the company and one common share purchase warrant, with each warrant entitling the holder to acquire an additional common share at an exercise price of C$0.30 per share for up to 36 months following issuance.
Proceeds of the offering will be used by Santacruz to purchase underground equipment for its Zimapan property, and for general working capital and corporate purposes.
The Mexico-focused silver miner currently owns and operates the Rosario project located in the Charcas mining district. It also holds an interest in the Veta Grande mine in Zacatecas, and has the right to operate the Zimapan mine until the end of 2020 under a mining lease agreement.
Shares of Santacruz Silver rose 2.1% at market open Monday. The Vancouver-based junior miner has a market capitalization of about C$49.7 million.