El Tigre Silver (CVE:ELS)(OTCQX:EGRTF) has signed a financial advisory consulting services agreement with Wealthcorp, which will aid the company in its efforts to raise capital to realize its long term goals and enhance shareholder value.
The company said the funds raised from any potential financing will be used to complete the construction of the production facility of its tailings operation and to provide funding to continue its planned exploration program to expand the initial resource at its El Tigre project.
Wealthcorp is a private financial services corporation whose senior management have over 40 years of combined experience within private equity and capital markets globally, business and corporate development and portfolio/asset management.
Under the terms of the deal, El Tigre has agreed to compensate Wealthcorp a monthly work fee of US$20,000, a cash success fee of 1.5% and compensation warrants equal to 5% of the aggregate number of shares or units sold under any financing transaction in excess of $5 million.
The junior precious metals developer earlier this summer received all the assays from an extensive underground and surface sampling program at its El Tigre property in northern Mexico, extending the vein system to 5.3 km of strike, and potentially more than doubling the size of the current resource.
The sampling was conducted over three areas on the project: the existing resource, the northern extension of the resource, and in the northern section of the property where a resource has not yet been defined. Some highlights from the program include 2 metres of 702 grams per tonne (g/t) silver and 0.8 metres of 1,148 g/t silver equivalent.
The El Tigre property, which stretches across 215 square km in the Sierra El Tigre of northeastern Sonora, Mexico, will be advanced with the help of cash flow from the company’s planned processing facility, which will recover silver and gold from El Tigre’s historical tailings pile. The tailings pile is the result of an estimated 70 to 75 million ounces of silver production and 325,000 to 350,000 ounces of gold.
The company’s eventual goal is to produce enough cash from its tailings facility to bring its in-situ resource to production, with the aim of increasing share value.