South American Silver Announces Private Placement for Gross Proceeds of Up to $16 Million

South American Silver Corp.(TSX:SAC) announced a private placement of 10 million units at a price of $1.60 per unit. The placement is in conjunction with a number of Asian technology companies and should result in gross proceeds of approximately $16 million. The Company expect to placement to close before the end of April.

As quoted in the press release:

The Offering is a strategic investment by a number of Asian based high technology investors, materials manufacturers, and indium/gallium end users from Taiwan, Hong Kong, Japan and Korea. The gross proceeds of the Offering will be approximately $16 million and would go toward the advancement of the Company’s Malku Khota silver-indium-gallium project in Bolivia and Escalones copper-gold project in Chile and for general corporate purposes.

South American Silver, President &CEO, Greg Johnson, commented:

This investment is an important step in facilitating the rapid advancement of one of the world’s largest silver, indium and gallium projects. These Asian high technology manufacturers and investors see outstanding value and potential in the Company’s projects, in particular, the large concentrations of the strategically important metals, indium and gallium, which are critical for their manufacturing of flat panel displays, LED lighting and thin film solar panels, among other applications. An estimated 60-70% of the world’s current indium mining and smelting production supply is in mainland China. The Malku Khota project is anticipated to become an important new, long life, low cost, Western source of these metals.

Click here to read the South American Silver Corp. (TSX:SAC) press release