The Canadian mining company Silver Valley Metals seeks financing through a private placement to advance its MexiCan lithium and potassium project and continue negotiations with the Mexican state-owned company, LitioMx. In May, the mining company stated it was in talks with LitioMx to form an exploration and production partnership for the project in Zacatecas and San Luis Potosi.
Silver Valley, previously known as Organimax Nutrient, owns the La Salada, Santa Clara and Caliguey projects in the region's salt flats, covering 4,060ha. In a statement, the company disclosed that it submitted documents to the TSX Venture Exchange for conditional approval of a private placement of common shares at US$0.10 per share with no guarantees, aiming to raise up to US$700,000 in gross proceeds.
"Once exchange approval is received, the company will close the first tranche, issuing 6,453,741 common shares of the company for total gross proceeds of US$645,374," the statement noted.
The raised funds will be used for planning and evaluating other lithium and potassium options in Mexico. Some of the resources will also go towards completing Phase 2 exploration at the Ranger-Page project in Silver Valley, Idaho and general working capital purposes.
"Financing is being carried out with three insiders, for a total of 350,000 common shares for US$35,000, where each insider subscription is a related party transaction. All securities issued will be subject to a four-month hold period," explained Silver Valley.
MexiCan is the country's second-most advanced lithium project and remains open for expansion through exploration, according to Silver Valley.
In January, President Andrés Manuel López Obrador announced during one of his conferences that his administration was seeking to renegotiate lithium concessions granted before the first amendment to the mining law in April 2022 to pave the way for the Sonora Sustainable Energy Plan. Moreover, López Obrador sought agreements with "one or two" companies that were granted lithium concessions for LitioMx, created in August 2022, to handle production.