Southern Silver Exploration Corp. (TSXV:SSV,FWB:SEG) closed the first tranche of its non-brokered private placement for gross proceeds of $400,100. A total of 8,002,000 units were issued at a price of $0.05 per unit. The Company also entered into an option agreement with Desert Star Resources Ltd. who can earn up to a 70-per-cent interest in Southern Silver’s Oro Project.
As quoted in the press release:
In accordance with the terms of the option agreement, Desert Star paid to Southern Silver $75,000 upon execution of the agreement. The option agreement provides that Desert Star can earn an initial undivided 51-per-cent interest in the Oro project by making an additional cash payment of $150,000 by Aug. 1, 2013, and, over a period of 42 months after approval of the option agreement by the TSX Venture Exchange, incurring exploration expenditures totaling $3-million and issuing one million common shares of Desert Star to Southern Silver.