Southeast Asia Mining (SEA) aims to raise US$6 million through a private placement of special warrants, which will go towards exploration activities at its Song Toh and Boh Yai silver-lead-zinc mines in Kanchanburi province.
The company wants to begin the mine permitting process, pre-production design and engineering, exploration data compilation, drilling and geophysical surveys at the two sites.
Jennings Capital will broker the private placement with each special warrant entitling the holder to receive one unit, or one and a half common shares, from the company. The offering will close on June 5.
SEA will make efforts to obtain a listing of the common shares on a recognized exchange and obtain a final receipt for a short form prospectus, qualifying the distribution of the common shares and the warrants issuable upon conversion of the special warrants no later than 30 days after the closing date.
SEA’s president Brian Jennings says the company’s joint venture agreement still stands, providing Southeast Asia with an option to earn an 80% interest in the Song Toh and Boh Yai mining lease applications, flotation plant and equipment.
The mines were operated by Cominco in 1948, explored and operated by German mining company Metalgesellschaft to 1990, and subsequently by private Thai company Kemco until 2002 when they were closed due to depressed metal prices.
Historically Song Toh and Boh Yai processed about 5.4 million tonnes of ore, producing 520,000 tonnes of lead and zinc concentrates. The plant was refurbished in 2008 by SEA and its joint venture partner when about 60,000 tonnes of ore were processed.