Southeast Asia Mining Corporation (SEA) will use the funds from a recently announced private placement to advance its Boh Yai and Song Toh projects. The company hopes to raise up to Can$2.5 million through the issue of unsecured convertible debentures. It has engaged Jennings Capital to conduct the brokered placement for a cash commission of 7% of the par value of the debentures sold at closing.
SEA has a joint venture agreement with an option to earn an 80% interest in the mining lease applications of the two historical operating Song Toh and Boh Yai silver-lead-zinc mines, flotation plant and equipment.
The mines were originally discovered by Cominco in 1948 and explored and operated by the German mining company Metalgesellschaft from 1969 to 1991 and subsequently by private Thai company Kemco until 2002 when they were closed due to falling metal prices.
The mines have processed historically 5.4 million tonnes of ore producing 520,000 tonnes of lead and zinc concentrates at the 1200 tonne/day flotation plant. The plant was refurbished in 2008 by SEA and its joint venture partner when about 60,000 tonnes of ore was processed.
The company also has a 100% interest in three special prospecting licences over 1308 hectares and seven special prospecting licence applications covering 4400 hectares surrounding the Song Toh and Boh Yai mines. It also owns two special prospecting licence applications for copper-gold exploration in the province of Lopburi and Nakon Sawan within the area of the Loei-Phetchabun gold belt.