Upon closing early in September, Southern Silver will move from 40% to 100% ownership of the project, adding about 49.9 million ounces silver and 1.35 billion pounds of combined lead and zinc to its account.

Southern Silver claims the simplified CLM ownership structure will enhance its market profile and potentially make it more attractive from an acquisition standpoint.

CLM is promoted as one of the larger and highest grade, undeveloped silver projects in the world. A May 2019 resource update calculated indicated resources of 134Moz silver-equivalent, comprising 37.5Moz silver, 40Mlb copper, 303Mlb lead and 897Mlb zinc. It also has 138Moz Ag-eq inferred, comprising 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn.

The company has completed 59,000m of drilling in 133 holes on CLM to date, spending $18.5 million, which equates to C7c/oz of discovered Ag-eq through end-2019.

Southern Silver has identified a further 10,000m of drilling for 2020, targeting specific step-outs from strongly silver-enriched mineral intercepts in the Las Victorias, South Skarn and the Mina La Bocona targets, with potential to increase the verified mineral endowment 30%.

Southern Silver also announced Monday plans to issue at least 35 million subscription receipts in a private placement at C20c, for gross proceeds of $7 million.

Each unit will consist of one common share and half a share purchase warrant, with each full warrant exercisable to buy one additional common share at a price of 25c during the first year, increasing to 30c in year two and 35c in year three.

An overallotment option could add a further $3 million of subscription receipts.

Net proceeds will be used to fund the cash payment for the transaction and for general working capital purposes.

The financing is expected to close on July 15.

Separately, Electrum also acquired nine million Southern Silver shares through exercising warrants, paying $1.35 million or 15c per share. It now owns 41.22% of Southern Silver fully diluted.

At 20c on Monday, shares in the company (TSXV: SSV) have gained 5% in the past 12 months, capitalising it at $27 million (US$20 million).