Silver Tiger Metals Inc. (TSX-V:SLVR) (OTCQB:SLVTF) is pleased to announce that it has closed its previously announced institutional non-brokered private placement of units of the Corporation for gross proceeds of $11 million, including $4 million from Eric Sprott, with the majority of the balance invested by strategic institutional resource funds.
Silver Tiger issued an aggregate of 36,666,667 units at a price of $0.30 each (the “Units”). Each Unit is comprised of one common share of the Corporation and one-half common share purchase warrant, with each full warrant exercisable at $0.50 for 36 months after the issuance of the warrants.
Glenn Jessome, President and CEO of Silver Tiger, commented, “We are pleased to have Mr. Sprott’s support along with that of our other strategic institutional resource investors. We are now fully funded to drill the high grade vein extensions to the North and South of the historic El Tigre Mine.”
The net proceeds from the offering shall be primarily used to fund continued exploration of the Corporation’s El Tigre silver property located in Sonora, Mexico. A portion of the proceeds will be used for general working capital purposes.
In connection with the closing, Silver Tiger issued 2,000,000 finder’s warrants to one finder who acted on behalf of the Corporation in connection with the Private Placement. Each finder’s warrant is exercisable into one common share of the Company at $0.50 per share, for a period of 36 months from the closing date.
All common shares issued in connection with the Private Placement and all common shares issued in connection with the finder’s warrants are subject to a four-month hold period that expires on November 28, 2020.
About the El Tigre Silver Property
The El Tigre silver property lies at the northern end of the Sierra Madre gold belt which hosts many epithermal gold and silver deposits including Dolores, Santa Elena and Chispas at the northern end. In 1896, gold was first discovered on the property in the Gold Hill area and mining started with the Brown Shaft in 1903. The focus soon changed to mining high-grade silver veins in the area with much of the production coming from the El Tigre vein. Underground mining on the El Tigre vein extended 1,450 meters along strike and mined on 14 levels to a depth of 450 meters. By the time the mine closed in 1938, it is reported to have produced a total of 67.4 million ounces of silver and 353,000 ounces of gold from 1.87 million tons (Craig, 2012).
Silver Tiger’s district scale El Tigre silver property is approximately 35 kilometers long and comprises 28,414 hectares and includes 25 kilometers of the prolific Sierra Madre trend. The El Tigre silver and gold deposit is related to a series of high-grade epithermal veins controlled by a north-south trending structure cutting across the andesitic and rhyolitic tuffs of the Sierra Madre Volcanic Complex within a broad gold and silver mineralized prophylitic alternation zone. The veins dip steeply to the west and are typically 1 meter wide but locally can be up to 5 meters in width. The veins, structures and mineralized zones outcrop on surface and have been traced for 5.3 kilometers along strike. Historical mining and exploration activities focused on a 1.5 kilometer portion of the southern end of the deposits, principally on the El Tigre, Seitz Kelly and Sooy veins. The unexplored Caleigh, Fundadora and Protectora exposed veins continue north for more than 3 kilometers and will be targets of Silver Tiger’s exploration.
El Tigre Resource Estimate
After acquiring El Tigre, the Corporation drilled 12,500 meters to define the halo of near surface gold mineralization around the mined high-grade veins of the historic El Tigre Mine. This allowed Silver Tiger to deliver a maiden resource estimate for the El Tigre Property to a depth of 150 meters containing indicated resources of 661,000 gold equivalent ounces at 0.77 g/t (21 g/t silver and 0.51 g/t gold) and inferred resources of 341,000 gold equivalent ounces at 1.59 g/t (88 g/t silver and 0.52 g/t gold). The National Instrument 43-101 Technical Report is available on the Corporation’s website and on SEDAR under the Corporation’s profile.
David R. Duncan, P. Geo., V.P. Exploration of the Corporation, is the Qualified Person for Silver Tiger as defined under National Instrument 43-101. Mr. Duncan has reviewed and approved the scientific and technical information in this press release and has reviewed the Technical Report.
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