Zacatecas Silver Corp. (TSX-V:ZAC, OTC:ZCTSF) reported that it has increased the size of its previously announced private placement financing from 41,666,666 company units to 62,500,000 units, at a price of C$0.06 per unit, for gross proceeds of up to $3.75 million.
The precious metals projects developer said proceeds of the offering will be used to fund a drilling campaign on the Zacatecas Silver Project, strategic initiatives, and working capital purposes.
Each unit will consist of one company common share plus one common share purchase warrant, with each warrant exercisable at $0.10 per share for a period of two years from the date of issue.
Zacatecas noted that it has the right to accelerate the expiry date if, at any time, the volume weighted average price of the shares on the principal exchange or market on which the shares trade is equal to or greater than $0.20 for 20 consecutive trading days.
The company added that it may pay finders a fee of cash and/or share purchase warrants.
The securities issued under the offering will be subject to restrictions on resale for a period four months from the date of issue.