GR Silver active on financing news – Resource World Magazine – Resource World Magazine

GR Silver Mining Ltd. [GRSL-TSXV, OTCQB, GPE-Frankfurt] said Thursday it plans to raise up to $7 million from a “best efforts” private placement of up to 26 million warrants priced at 27 cents each.

GR shares were active on the news, easing 16.15% or $0.052 to 27.3 cents on volume of 1.7 million. The shares are currently trading in a 52-week range of 82 cents and 24 cents.

Under the terms of the financing, each special warrant will be automatically exercisable into one unit, each of which will consist of one common share and one half of one common share purchase warrant. Each warrant can be used to acquire one share of the company for up to 36 months after the closing date at an exercise price of 37 cents per share.

The company said the agents have been granted an option to purchase up to an additional 3.9 million warrants at the issue price. That option can be exercised at any time up to 48 hours prior to the closing date of the offering, a move that could raise additional proceeds of $1.05 million.

The offering is expected to close by March 29, 2022, subject to a number of conditions, including approval by the TSX Venture Exchange.

The financing news comes just days after Eric Zaunscherb, a well known former Canadian analyst, was named CEO of the company in addition to his role as non-executive chairman of the board. GR Silver founder Mario Fonseca has been named President and Chief Operating Officer.

GR Silver is a Mexico-focused company engaged in cost-effective silver-gold resource expansion on its 100%-owned assets which lie in the Rosario Mining District in the southeast of Sinaloa State Mexico. The company said three major acquisitions within three years has given it full control of 1,400 square kilometres, including two past-producing mines and three areas – San Marcial, La Trinidad, and Plomosas –  it believes known resources can be expanded.

GR Silver’s 6,574-hectare Plomosas Silver project is located near the historic mining village of La Rastra and within 5.0 kilometres of the company’s San Marcial Silver Project in the Rosario District. Plomosas is a past-producing asset, where only one mine, the Plomosas lead-zinc-silver-gold underground mine operated a 600 ton-per-day crush-mill-flotation circuit from 1986 to 2001, producing approximately 8.0 million ounces of silver, 73 million pounds of lead, and 28 million pounds of zinc.

San Marcial is a near-surface, high-grade silver-lead-zinc open pit-amenable project, which is estimated to contain an indicated resource of 36 million silver equivalent (AgEq)  ounces, plus an inferred resource of 11 million AgEq.

The La Trinidad Project, which was acquired in March 2021, contains a former open pit head leach mine, which operated between 1995 and 1998, producing approximately 52,000 ounces of gold. Subsequent production between 2014 and 2019 brought cumulative output to 112,000 ounces of gold.

The company recently said this year’s exploration plans for the Plomosas project are crystallizing with the primary focus on expansion of the high-grade silver-dominant depth extension at San Marcial.