UPDATE 2-Fortuna Silver ups bought-deal offer size by 14 pct
* Increases bought deal offering to C$40 mln from C$35 mln
* To use proceeds to fund exploration at San Jose mine (Adds revised size of offering, updates share movement)
Dec 1 (Reuters) - Fortuna Silver Mines (FVI.TO) raised the size of its bought deal offering by 14 percent to C$40 million, hours after making the initial announcement.
The Vancouver-based company said it will now raise C$40 million and use the proceeds mainly for exploration activities at its San Jose project in Mexico's Oaxaca province.
Earlier this morning, the company had said it would raise C$35 million in a bought deal.
In September, the company said the San Jose mine will produce 5 million silver equivalent ounces annually at a cash cost of $6.20 per ounce.
The mine is set to begin production in the third quarter of 2011.
The company said if the over-allotment option is fully exercised, the gross proceeds from the offering will be C$46 million. Shares of the company were down 18 Canadian cents at C$4.13 Wednesday morning on the Toronto Stock Exchange. They have nearly doubled so far this year. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Vyas Mohan)
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