GR Silver Mining to Raise CA$1.76 Million

GR Silver Mining announced a non-brokered private placement to raise up to CA$1.76 million (US$1.3 million). The company outlined that part of the funds will finance exploration in the San Marcial area at its flagship Plomosas project in Sinaloa.

GR Silver plans to issue up to 11 million units at CA$0.16 per unit. Each will equal one common share and one-half of a common share purchase warrant. Each full warrant will allow the holder to purchase one common share at CAD$0.22 within 24 months of the closing date.  

GR Silver said the funds will be used to explore the San Marcial area in its Plomosas project and as general working capital. GR Silver Mining has made significant progress in developing Plomosas, including the completion of a comprehensive review of geological, geochemical, and geophysical data from the San Marcial Area. 

According to GR Silver’s Management Discussion and Analysis (MDA) for the period ending June 30, 2024, the company’s review, conducted with the help of geological experts, has refined its exploratory model. This model now focuses on high-grade silver mineralization found in hydrothermal breccias. Previously, this approach led to significant drill results, such as 101.6m at 308g/t Ag in drill hole SMS22-10 and 83.2m at 215g/t Ag in drill hole SMS22-20. The company has now identified similar geological conditions to the west and northwest of the San Marcial resource area, which will be targeted in upcoming exploration efforts.

Additionally, GR Silver closed the arm’s-length disposition of Marlin Gold to a Canada-based company on July 17, 2024. The company said this move reduced its working capital deficit while preserving its resource inventory, allowing it to focus on resource growth and the development of Plomosas. The company has also initiated a bulk sampling test mining program at the San Juan historical mine site, which has provided valuable geological information and an effective exploration platform.

Furthermore, GR Silver executed a Waiver and Release Agreement with Mako Mining, receiving a total of US$960,000, which includes US$500,000 in cash and 296,710 common shares of Mako, valued at US$460,000. At that time, Eric Zaunscherb, CEO and Chair, GR Silver Mining, said the agreement would enable the company to advance its strategic plans. GR Silver adds that it focuses on expanding its resources in the San Marcial area and conducting bulk sampling and small-scale test mining in the Plomosas area, as reported by MBN.

Importance of Plomosas

The Plomosas project is GR Silver’s flagship asset. The company controls 78km² of concessions within the project. The Plomosas project encompasses the Plomosas and San Juan mines, both being re-evaluated for a potential low-cost restart of mining activities. 

During Mexico Mining Forum 2024 CDMX, Marcio Fonseca, President and COO, GR Silver noted that the project had been frequently overlooked. However, from 2019 to 2023, the mineralized zone in the southeastern area of San Marcial expanded threefold. The project is now acknowledged for its high-grade silver deposit, which has a favorable geometry for developing a highly productive underground mine. This deposit has the potential for both lateral and depth expansion. As the project already features modern infrastructure, Fonseca says, the project could be restarted with minimal investment and risk. Furthermore, the project has all permits in line for the development of underground mining operations.