* 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 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
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