Zacatecas Silver Closes First Tranche of Private Placement
MWN-AI** Summary
Zacatecas Silver Corp. (TSXV: ZAC; OTC: ZCTSF) announced the completion of the first tranche of its private placement financing on September 23, 2025. The company has issued 38,449,335 units at a price of $0.06 per unit, generating gross proceeds of approximately $2.31 million. Each unit comprises one common share and one warrant, with the latter exercisable at $0.10 per share over two years. Notably, the company retains the right to accelerate the expiry date of the warrants based on market performance.
The private placement also involved payment of finders' fees amounting to $113,297.19, alongside the issuance of 1,888,286 non-transferable finders' warrants. Securities from this tranche will be subject to a four-month resale restriction. The funds raised will support a drilling campaign at the Zacatecas Silver Project, as well as other strategic initiatives and working capital needs. The offering is pending approval from the TSX Venture Exchange.
Eric Vanderleeuw, the CEO and a director, participated in this financing, purchasing 500,000 units for $30,000, which is classified as a “related party transaction.” Nevertheless, the company anticipates being exempt from certain formal valuation and approval requirements due to the modest scale of this investment relative to its market capitalization.
Zacatecas Silver Corp. is currently focused on two key projects: the Esperanza Gold Project and the Zacatecas Silver Project, both located in Mexico's mineral-rich regions. The Zacatecas Silver Project benefits from proximity to significant silver mines and encompasses a promising resource base, with the potential for substantial mineralization identified.
Forward-looking statements in the release emphasize the uncertainties inherent in exploration and regulatory compliance, cautioning that actual outcomes may diverge from projected estimates.
MWN-AI** Analysis
Zacatecas Silver Corp.'s recent announcement regarding the closure of the first tranche of its private placement financing is noteworthy for investors considering opportunities in the precious metals sector. The issuance of nearly 38.45 million units at a price of $0.06 per unit, resulting in gross proceeds of approximately $2.31 million, demonstrates a significant push towards funding crucial exploratory and operational initiatives, particularly at the Zacatecas Silver Project, which is strategically located within Mexico’s acclaimed Fresnillo silver belt.
This financing comes at a pivotal time, as the company aims to underwrite a drilling campaign that could enhance its mineral resource estimates. With the encouraging mineral endowments already reported—16.4 million ounces of silver equivalent at Panuco Deposit—the potential increase in resource delineation could significantly influence the company's valuation and attractiveness in an ever-evolving market.
Investors should pay close attention to the actual usage of the raised capital, as well as the anticipated completion of the final tranche of the offering by the end of September 2025. Furthermore, the structure of the placement—where units include share purchase warrants exercisable at $0.10—suggests that management is aligning interests with those of investors, as the potential for price appreciation is directly tied to the company's successful resource exploration and development.
Moreover, the company's related party transaction involving a $30,000 subscription by CEO Eric Vanderleeuw might instill confidence in retail investors, reflecting insider belief in the company's prospects. However, potential investors should remain cognizant of the inherent risks highlighted in the company's forward-looking statements, particularly given the exploration-driven nature of the mining industry and regulatory landscapes in emerging markets.
In conclusion, while Zacatecas Silver presents an opportunity bolstered by strategic positioning and insider commitment, prospective investors should conduct thorough due diligence, considering risks alongside potential rewards as the market segments continue to fluctuate.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
VANCOUVER, British Columbia, Sept. 23, 2025 (GLOBE NEWSWIRE) -- Zacatecas Silver Corp. (TSXV: ZAC; OTC: ZCTSF) (the “Company”) is pleased to announce that it has closed the first tranche of its previously announced private placement financing by issuing a total of 38,449,335 units (“Units”) at a price of $0.06 per Unit for gross proceeds of $2,306,960. The Company anticipates it will complete the final tranche by September 29, 2025.
Each Unit consists of one common share (a “Share”) and one common share purchase warrant (a “Warrant”), with each Warrant exercisable at $0.10 per Share for a period of two years from the date of issue (the “Expiry Date”). The Company 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 (“20-Day Period”). In the event of acceleration, the Expiry Date will be accelerated to a date that is 30 days after the Company issues the acceleration notice through a news release, provided that the acceleration notice is issued within 10 business days after the end of the particular 20-Day Period.
Under the first tranche of the private placement, the Company paid finders fees of $113,297.19 and issued 1,888,286 non-transferable finders share purchase warrants exercisable for a period of two years from the date of issue. The securities issued under the first tranche are subject to restrictions on resale for a period four months from the date of issue.
The proceeds of the offering will be used to fund a drilling campaign on the Zacatecas Silver Project, strategic initiatives and working capital purposes. The Offering is subject to the acceptance of the TSX Venture Exchange.
A holding corporation of Eric Vanderleeuw, the Company's CEO and a director, subscribed for 500,000 Units for $30,000. This participation constitutes a “related party transaction” as defined under Multilateral Instrument 61-101 (“MI 61-101”). However, the Company expects to be exempt from formal valuation and minority shareholder approval requirements under Sections 5.5(a) and 5.7(a) of MI 61-101, as his participation does not exceed 25% of the Company’s market capitalization.
About Zacatecas Silver Corp.
The Company has two key projects. The Esperanza Gold Project in Morelos State, Mexico and the Zacatecas Silver Project in Zacatecas State, Mexico.
Esperanza is an advanced stage, attractive low-cost, low-capital-intensity and low-technical-risk growth project located in Morelos state, Mexico. Alamos has progressed the project through advanced engineering, including metallurgical work, while also focusing on stakeholder engagement, including building community relations. The Company announced a Mineral Resource Estimate at Esperanza consisting of a Measured and Indicated Mineral Resource Estimate of 30.5 million tonnes at 0.97 g/t AuEq for 956 thousand ounces AuEq and an Inferred Mineral Resource estimate of 8.7 million tonnes at 0.98 g/t AuEq for 277 thousand ounces AuEq (see news release dated November 16, 2022).
The Zacatecas Silver Project is located in Zacatecas state, Mexico, within the highly prospective Fresnillo silver belt, which has produced over 6.2 billion ounces of silver. The Company holds 7,826 hectares (19,338 acres) of ground that is highly prospective for low-sulphidation and intermediate-sulphidation silver base metal mineralization and potentially low-sulphidation gold-dominant mineralization. The Company announced a Mineral Resource Estimate at the Panuco Deposit consisting of 2.7 million tonnes at 187 grams per tonne (g/t) silver equivalent (AgEq) (171 g/t silver (Ag) and 0.17 g/t gold (Au)) for 16.4 million ounces AgEq (15 million ounces silver and 15,000 ounces gold) (see news release dated December 14, 2021).
The property is 25 kilometres (km) southeast of MAG Silver Corp.'s Juanicipio Mine and Fresnillo PLC's Fresnillo Mine. The Property shares common boundaries with Pan American Silver Corp. claims and El Orito, which is owned by Endeavour Silver.
On behalf of the Company
Eric Vanderleeuw
Chief Executive Officer and Director
(519) 729 2440
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on assumptions as of the date of this news release. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. Zacatecas Silver cautions that all forward-looking statements are inherently uncertain and that actual performance may be affected by many material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to Zacatecas Silver’s limited operating history, its proposed exploration and development activities on is Zacatecas Properties and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward-looking information. Except as required under applicable securities legislation, Zacatecas Silver does not undertake to publicly update or revise forward-looking information.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
FAQ**
How does the recent funding round impact the overall financial stability and future projects of Zacatecas Silver ZCTSF, particularly regarding the drilling campaign on the Zacatecas Silver Project?
Can you elaborate on the strategic initiatives that Zacatecas Silver ZCTSF plans to pursue with the proceeds from the private placement financing?
What measures is Zacatecas Silver ZCTSF taking to ensure compliance with environmental and governmental regulations during its exploration activities?
How does the recent participation by Eric Vanderleeuw in the private placement affect investor confidence and corporate governance at Zacatecas Silver ZCTSF?
**MWN-AI FAQ is based on asking OpenAI questions about Zacatecas Silver (OTC: ZCTSF).
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