Funds slated for expanded core drilling program at San Jose Property
By Devika Patel
Knoxville, Tenn., Oct. 18 - Arian Silver Corp. said it plans a private placement of shares. Xcap Securities plc is the agent for the brokered portion, which is for £3.12 million. The remaining £773,800 will be sold on a non-brokered basis to Sprott Asset Management.
The company will sell a total of 21,604,435 common shares at 18p each for £3.89 million. Of the shares, 17,305,547 will be sold by the agent. The per-share price is a 12.2% discount to the Oct. 15 closing share price of 20.5p.
Proceeds will be used to advance an expanded core drilling program at the company's San Jose Property in Zacatecas, Mexico, to purchase plant and equipment and for infrastructure improvements in relation to the contract mining and milling operation at San Jose, as well as for general working capital and corporate purposes.
"Last month saw the company move into production at its San Jose mine, and we now look forward to working closely with our recently appointed broker in what the company regards as a very healthy market environment," chief executive Jim Williams said in a press release.
"In order to take advantage of the rising silver price and the healthy market conditions, the financing allows the company to make efficiency changes to the mill to increase silver recoveries and commence, ahead of schedule, a 10,000-meter diamond drilling program along the extensive strike extension of the San Jose Vein."
The silver exploration, development and production is based in London.
| Issuer: | Arian Silver Corp.
|
| Issue: | Common shares
|
| Amount: | £3,888,799
|
| Shares: | 21,604,435
|
| Price: | 18p
|
| Warrants: | No
|
| Agent: | Xcap Securities plc (for £3,114,999), non-brokered (for £773,800)
|
| Investor: | Sprott Asset Management (for £773,800)
|
| Settlement date: | Oct. 18
|
| Stock symbol: | London: AGQ
|
| Stock price: | 20.56p at close Oct. 18
|
| Market capitalization: | £48.96 million
|
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