Starcore International Mines (TSX:SAM) is seeking to raise C$5 million ($5.56 million) to fund upcoming sampling and development work at the Tortilla Project (San Juan Nepomuceno Project) in Mexico.
The company will issue a maximum of 20 million units at an offer price of C$0.25 per unit, which comprises one share and one-half purchase warrant.
A whole warrant is exercisable to purchase one share at C$0.35 for a period of two years from the issue date so long as the company’s closing price remains equal or greater than C$0.50 per share for 10 consecutive trading sessions after expiry of resale restrictions.
As reported by Mining.com.au, Starcore entered a non-binding letter of intent to lease the project in July of this year from Manuel Felipe Arreguin Martinez through its wholly owned subsidiary Compañia Minera Peña de Bernal.
Located 150km from Santiago de Queretaro, the company will be entitled to six mineral claims as well as two properties for around $407,666 across a 10 year lease.
The project historically spans back to the 1800s where it was under Spanish control until 1870, before British company O.J. Braniff commenced operations at the site.
The project aligns with the company’s greater strategy to spin out African assets and focus towards gold and silver production from its Mexican portfolio.
Starcore International Mines is a precious metals producer and explorer with a portfolio of assets spanning Canada, Mexico, and West Africa.
Write to Maddison Elliott at Mining.com.au
Images: Starcore International Mines
