Sable plans to issue up to 33.33 million special units at 15 cents each, with each unit consisting of both a common share and a half warrant. Full warrants will be exercisable at 20 cents for three years after the date the deal closes, expected on or about Sep. 10.
The company says that the proceeds will be used for exploration and general corporate purposes.
Sable is a junior explorer that focuses primarily on exploring greenfields precious metals projects with a method it calls the "Upper Level Epithermal Strategy," with multiple properties across Argentina, Mexico, and Peru.
The company recently optioned the El Fierro property in San Juan for US$2.1 million, a project which consists of two areas of mineralization ranging six kilometres that contain historic silver, lead, and zinc workings that Sable says were mined in the late 1800s up until the 1960s. Shares of Sable saw a steep uptick in trade volume following results from its first grab samples from El Fierro, which came back with grades including one over 10,000 grams of silver per tonne (g/t Ag), with 11 of 14 sampes returning greater than 100 g/t Ag.
Earlier in the year, Sable took surface samples from its Fermin skarn project, also in San Juan, which revealed zinc, lead, silver and copper anomalies in a 1.9 kilometre strike at the deposit, with grades including 2.5 metres of 16.07% zinc-equivalent and 21.4 metres of 7.26% zinc-equivalent.
Sable is led by CEO Ruben Padilla, founder of Talisker Exploration Services Inc., and a geologist who formerly worked with AngloGold Ashanti Limited (JSE: ANG) in South America, including the discovery of the La Colosa deposit in Colombia.
Shares of Sable are up 6.5 cents year-to-date to 16.5 cents.