Southern Silver Provides Corporate Update and Announces Increase of Unit Offering from $2 to $5 Million
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/28/12 -- Southern Silver Exploration Corp. (TSX VENTURE: SSV)(FRANKFURT: SEG) (the "Company") reported that at its annual general meeting held on March 22, 2012 the following directors were re-elected: Lawrence Page, Q.C., Scott Hean, Terrence Eyton, D. Roger Scammell, Dale Janowsky, Nazlin Rahemtulla, and Jean-Pierre Colin.
The following officers were re-appointed subsequent to the annual general meeting: Lawrence Page, Q.C. as President, Mahesh Liyanage as Chief Financial Officer, and Arie Page as Corporate Secretary. Scott Hean resigned as Vice President, Administration on January 31, 2012 but continues to serve as a director of the Company.
In addition, the shareholders approved the Company's rolling incentive stock option plan pursuant to which a maximum of 10% of the issued shares will be reserved for issuance under the plan. The plan is subject to TSX Venture Exchange acceptance.
The Company also reports that it has amended the previously announced unit offering and now plans to issue up to 41,700,000 units at a price of $0.12 per unit for gross proceeds of $5,004,000. Each unit will consist of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share for a period of three years at an exercise price of $0.17 per share.
Net proceeds from the Offering will be utilized for exploration and property maintenance expenses incurred on the Cerro Las Minitas project in Mexico and the Oro project in the USA. Finder's fees may be payable. The private placement and finder's fees are subject to regulatory approval.
Cerro Las Minitas Update
Diamond drilling with two core rigs continues on the Cerro Las Minitas project. One drill rig remains dedicated to the continued delineation of mineralization in the Blind and El Sol zones. The second drill rig is testing specific occurrences located within the area of historic mining and several targets derived from the recently completed surface sampling and an IP geophysical program. Multiple geological and geophysical targets remain to be tested and fully delineated within this portion of the property.
Twenty-nine drill holes totaling approximately 8,030 metres were completed on the project in 2011. An additional 4630 metres in twenty drill holes have been completed to date in 2012; one additional hole is in progress. Assays from ten drill holes are pending.
The Company has scheduled 20,000 metres of core drilling in 2012, with the aim of completing a NI 43-101 compliant resource on these first set of targets by Q4 of 2012. This will be the initial milestone toward the Company's goal of delineating a larger, multi-million tonne, high-grade, silver-enriched polymetallic resource on the project.
Dragoon Update
The Company also reported that optionee Freeport-McMoRan Exploration Corp. (FMEC) has completed a single drill hole at the Dragoon Project, located 90 kilometres southeast of Tucson, Az.
The hole, DS-12-03, which is located approximately 175 metres to the north of hole DS-11-02, was drilled to a total depth of 1170 metres and is currently being logged and sampled. Assays are pending.
About Southern Silver Exploration Corp.
Southern Silver Exploration Corp. is a precious and base metal exploration company and a member of the Manex Resource Group; a private company comprised of an exceptional multi-disciplinary team of professionals with specific expertise in all areas of exploration, development, corporate finance and public company administration.
The Company's growth strategy is to acquire, explore and develop high-quality properties in progressive jurisdictions within North America. Its current projects include the silver-lead-zinc Cerro Las Mintas project and the copper-gold-silver Minas de Ameca in Mexico, the porphyry copper-molybdenum Dragoon project in Arizona and the gold-silver-copper Oro project in New Mexico.
On behalf of the Board of Directors
Lawrence Page, President, Southern Silver Exploration Corp.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. These statements are based on a number of assumptions, including, but not limited to, assumptions regarding general economic conditions, interest rates, commodity markets, regulatory and governmental approvals for the company's projects, and the availability of financing for the company's development projects on reasonable terms. Factors that could cause actual results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, the timing and receipt of government and regulatory approvals, and continued availability of capital and financing and general economic, market or business conditions. Southern Silver Exploration Corp. does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Southern Silver Exploration Corp.
Liana Shahinian
1.888.456.1112
liana@mnxltd.com
www.southernsilverexploration.com
