Capitan Silver Secures CA$20 Million for Cruz de Plata

Capitan Silver has announced a bought-deal private placement, expected to raise over CA$20 million (US$14.45 million), led by Stifel Canada as sole bookrunner and lead underwriter, alongside a syndicate of underwriters. The Offering consists of 9,855,000 common shares at CA$2.03 per share, with the potential for underwriters to purchase an additional 1,478,250 shares under the same terms. Proceeds will be used to advance exploration at the Cruz de Plata gold-silver project and for general corporate purposes. The Underwriters’ option may be exercised, in whole or in part, up to 48 hours prior to closing, which is anticipated on or around Dec. 17, 2025, subject to customary conditions including TSX Venture Exchange approval.

Underwriters will receive a cash commission equal to 6% of the gross proceeds. The offering is being conducted under the Listed Issuer Financing Exemption of National Instrument 45-106 – Prospectus Exemptions, allowing sales to investors in all Canadian provinces except Quebec without a statutory hold period. It may also be extended to US persons or investors in other jurisdictions under applicable private placement exemptions, without the need for a prospectus or registration.

Project Overview

The Cruz de Plata Project in Durango, Mexico, includes the El Capitan gold prospect and the historic Jesus Maria and San Rafael silver mines. The property hosts multiple mineralized veins, fault zones, poly-metallic skarns, and gold-rich volcaniclastics. To date, 86 diamond drill holes totaling over 11,550m have identified near-surface gold at El Capitan and significant silver with associated gold, lead, and zinc at Jesus Maria, potentially suitable for open-pit extraction.

Mining in the area dates back to 1887, with modern exploration by Aurcana (2004) and Riverside (2008–2009) confirming gold and silver potential. Since 2011, work has focused on El Capitan and Jesus Maria, defining an inferred resource of 305,000oz Au at 0.46g/t and 15Moz Ag at 62g/t, open at depth. Historic drill highlights at Capitan Hill include 57g/t Au over 107.35m, 69g/t Au over 37.15m, and 55g/t Au over 80.12m, underscoring the project’s significant exploration potential.

Capitan Silver Joins Growing Wave of Mining Investments in Mexico

Capitan Silver’s private placement to advance exploration at the Cruz de Plata project reflects a broader trend of significant mining investments across Mexico. The country continues to attract funding for both greenfield and brownfield projects, highlighting its potential as a key destination for resource development.

Canada-based Fortuna Mining is deploying US$19 million for generative exploration at its Centauro and La Carmen projects. Activities include mapping, sampling, and maiden drill campaigns aimed at identifying and advancing the next generation of high-potential gold and silver projects.

In May, Oroco Resources announced plans to invest US$20 million in the second phase of exploration at the Santo Tomás copper project in Sinaloa, expanding its copper resource base and creating additional local employment. Meanwhile, Southern Copper Corporation, a Grupo México subsidiary, has allocated over US$600 million in 2025 to modernize existing mines, improve water and tailings management, and advance a US$10.2 billion development pipeline including the El Arco and El Pilar copper projects.