Impact Silver Corp. [IPT-TSXV, ISVLF-OTC Pink, IKL-FSE] said it has closed the first tranche of the non-brokered private placement financing that was originally expected to raise $6.2 million but has subsequently been upsized to $ 8.2 million.
Under the first tranche, the company has received gross proceeds of $2.93 million from the issuance of 10.48 million LIFE units priced at 28 cents each and gross proceeds of $4.19 million from the issuance of 15.5 million units (the Standard Units) priced at 27 cents per unit. Total gross proceeds from the sale amount to $7.13 million.
The second tranche of the offering is expected to close by May 29th, 2024.
The company said it intends to use proceeds of the offering to accelerate exploration activity at its Plomosas high-grade zinc-silver property in Chihuahua, Mexico, further develop its prolific silver assets at its legacy Royal Mines of Zacualpan Silver-Gold District in central Mexico, as well as invest in operational improvements to improve productivity and throughput as the price of silver nears 52-week highs.
Exploration activities include sampling, target definition, and drilling with the intention of expanding the existing JORC mineral resource at Plomosas, where only 600 metres of the 6.0-kilometre-long structure has been tested.
“With silver rallying to over US$30 per ounce last week and going higher not to mention strong zinc prices amidst a rally in base metals, IMPACT Silver is well positioned to benefit from production at Plomosas, Guadalupe, and high potential exploration programs in 2024,’’ said Impact President and CEO Frederick Davidson.
IMPACT Silver is a successful producer-explorer with two mining projects in Mexico. In the Royal Mines of Zacualpan Silver-Gold District, Impact owns 100% of the 211 square kilometre Zacualpan project where three underground silver mines and one open pit mine feed the central Guadalupe processing plant
The announcement comes after the company announced a new silver vein discovery in its producing Guadalupe silver mine in Royal Mines of Zacualpan Silver-Gold District. To the south, the Capire Project includes the 200 tonne-per-day processing pilot plant adjacent to an open pit silver mine with NI 43-101 inferred mineral resource of over 4.5 million ounces of silver, 48 million pounds of zinc and 21 million pounds of lead.
Over the past 18 years, Impact has placed multiple zones into commercial production and produced over 13 million ounces of silver, generating revenues of over $261 million.
Meanwhile, Impact has begun preliminary mining and processing operations at its Plomosas zinc mine where upgrades to facilities and equipment continue.
In 2021, the previous owner processed 31,695 tonnes, producing 2,442 tonnes of zinc concentrate and 599 tonnes of lead concentrate.
Impact Silver shares eased 3.2% or $0.01 to 30 cents and trade trade in a 52-week range of 38 cents and 14 cents.
