Southeast Asia Mining (SEAM) has completed the first tranche of a $2.5 million private placement, netting almost $1 million to funnel into its Kemco project in Thailand’s Kanchanburi province, about 300km northwest of Bangkok. The placement was announced late last year, with Jennings Capital brokering the debentures.
The proceeds from the sale will partly fulfil the first option payment in the company’s joint venture agreement for the two historical operating Song Toh and Boh Yai silver-lead-zinc mines within the project site.
The company will pay USD$500,000 and issue 3 million common shares to its joint venture partner to complete the first part of the agreement, which will see SEAM earn an 80% interest in the mining lease applications of the two 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 Thailand 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 SEAM and its joint venture partner when about 60,000 tonnes of ore were 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.
SEAM has also completed the NI 43-101 technical report for the Kemco project. A 1.1 million tonne indicated and inferred resource has been identified at the SongToh mine and a 3.8 million tonne indicated and inferred resource has been estimated at Boh Yai, with grades of up to 3.57% lead, 3.07% zinc and 72.63 grams/tonne silver.