Southern Silver Exploration Corp. (TSXV:SSV,FWB:SEG) announced that Freeport-McMoRan Exploration Corporation has provided Southern Silver with funding in the amount of $570,000. Southern Silver used $290,000, including applicable taxes, to pay the May 18, 2014 option payment to the optionor of the Cerro Las Minitas mineral concessions
while the balance of $280,000 was utilized in ongoing exploration expenses.
As quoted in the press release:
FMEC has been providing funding for, and directing, Southern Silver’s subsidiary, Minera Plata del Sur, S.A. de C.V., to explore the property since October 2012 and holds an option to earn a 70% indirect interest in the project by making staged purchase payments and funding exploration and development expenditures of $25 million on the project over a ten year period. Included in the gross interest is an option to acquire an initial 51% interest to be earned in the first three years of the agreement by expenditure of $5,000,000 – being $4,400,000 in exploration costs and $600,000 in option payments to Southern Silver.