(Alliance News) - Guanajuato Silver Company Ltd on Friday said it is expanding its private equity financing to CAD8.5 million, which is around GBP5.3 million, following additional demand.

The Vancouver, Canada-based silver producer with mineral projects in Mexico said the private placement will now consist of a total of 20.0 million units at a price of CAD0.425 per unit.

Shares in Guanajuato Silver were flat at 26.5 pence on Friday morning in London.

Guanajuato Silver announced the financing on December 12, and it closed an initial tranche of 16.0 million units for proceeds of CAD6.8 million on December 21.

It is expected that a second and final tranche for the balance of the offering will be completed on Tuesday next week.

The proceeds will be used to ramp up production at Guanajuato Silver's existing mines in and around Guanajuato, including El Cubo, San Ignacio and Valenciana.

The funds will also be used to expand and modernise the processing facilities at the Topia mine in Durango in Mexico, increase brownfields' exploration programmes, and fund general and administrative expenses.

By Jaskeet Briah, Alliance News reporter

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