Toronto-listed William Resources intends to raise as much as $9 million to develop and construct a silver-gold mine at its Velardena project in Mexico’s Durango state.
The company will issue 10-11.25 million special warrants, each of which will be priced at 80 cents, for gross proceeds of $8-9 million. Each special warrant will entitle the holder to receive one common share and a one-half common share purchase warrant. Each whole common share purchase warrant will allow the holder to buy one share priced at $1, for a period of 18 months from the closing date. The deal is expected to close on or before June 6.
A previous feasibility study indicates the Velardena can sustain annual production of 2.2 million oz. silver and 24,000 oz. gold in concentrates over a mine life of 11 years. The average cash cost of production is projected at US$190 per oz. gold-equivalent.
Startup is expected in the first quarter of 1996.
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