Santacruz Silver Mining SCZ.V raises $40 million

There is still life left in a few juniors and Santacruz Silver is one of the few deals still able to raise copious amounts of money.

On January 23 Santacruz announced a $30 million financing, 3 hours later it was raised to $35 million and as of today it got bumped to $40 million.

I would expect some drift in the share price as the need to support the stock over $1.85 to get the financing closed is no longer required.

Santacruz Silver Mining Ltd. has closing its prospectus offering announced on Jan. 23, 2013, through a syndicate of underwriters led by Canaccord Genuity Corp., and including Raymond James Ltd. and Cormark Securities Inc. The company issued 19 million common shares at a price of $1.85 per common share for gross proceeds of $35.15-million. The underwriters also exercised their overallotment option to acquire an additional 2.85 million common shares for additional gross proceeds of $5,272,500. Including the proceeds from the exercise of the overallotment option, the total gross proceeds of the offering were $40,422,500. The underwriters received a cash fee equal to 6 per cent of the gross proceeds of the offering, as well as 1,311,000 warrants, each of which is exercisable to purchase one common share for a price of $1.85 for a period of 24 months. Canaccord was issued an additional 60,000 common shares as a corporate finance fee.

Word has it that this deal will eventually go to $4.00/share, whenever I hear that a $3.00/share price is more likely.