Americas Gold raised nearly $ 40 million

Americas Gold and Silver Corp. \[USA-TSX; USAS-NYSE American\] announced Friday, September 4, that the company has raised $ 39.4 million from major financing through a "bought deal" that will sell 10.2 million shares of common stock for one price of $ 3.86 per share. The net proceeds will be used for the exploration and development and / or improvement of its mining properties, including those in connection with the start of production of its Relief Canyon mine. The amount raised, originally targeted at $ 25 million, included the partial exercise of an over-allotment option by the syndicate banks. The Relief Canyon Mine is located on the southern edge of the Pershing gold and silver trend, approximately 95 miles northeast of Reno, Nevada. The project consists of an open pit mine and a heap leach processing facility. "This land package provides the company with an opportunity to expand the Relief Canyon deposit and make new discoveries on nearby properties," the company said. The company said that commercial production at Relief Canyon had been delayed until the fourth quarter due to "various start-up difficulties". Americas announced that its precious metals production will increase significantly over the next two years as production at Relief Canyon is ramped up in conjunction with an expected increase in silver production at Cosala's Sinaloa, Mexico operations. The company recently said an illegal blockade at the Cosala operation has been resolved and operations are expected to resume before the end of the third quarter. In the meantime, Americas Gold and Silver is continuing to recapitalize the Galena complex in the Silver Valley of northwest Idaho, which it owns 60%. The company is working under a joint venture agreement with Canadian financier Eric Sprott to recapitalize the mine. The joint venture will allow North and South America to increase development, upgrade infrastructure, acquire new mining equipment, and move to exploration below current operating areas with the aim of positioning the galena complex that will facilitate the resources and production can be increased significantly over the next two years and operating costs can be reduced. Sprott is providing $ 20 million through a private company to fund these improvements and will acquire a 40% interest in the project. Galena has so far produced up to 1 million ounces of silver annually, albeit at high costs.