South American Silver Corp. Announces Second Closing of Previously Announced $4.0 Million Bought Deal Private Placement Financing

South American Silver Corp. (TSX:SAC)announced that it has closed 1,040,000 units, for gross proceeds of $655,200, of its previously announced bought deal private placement of an aggregate of 6,350,000 units, priced at $0.63 per Unit, bringing the aggregate gross proceeds to date to $4,000,500.

The press release is quoted as saying:

Each Unit is comprised of one common share (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each whole warrant will be exercisable to purchase one common share of the Company for a period of 24 months from July 15, 2010 at a price of $0.95. In the event that the common shares of the Company trade on the Toronto Stock Exchange (the “TSX”) at a price not less than $1.25 for a period of 10 consecutive trading days following the closing of the Offering, the Company shall be entitled to accelerate the exercise period of the Warrants to a period ending at least 30 days from the date notice of such acceleration is provided to the holders of Warrants.

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