Silver Mines Ltd (ASX:SVL, OTC:SLVMF) has raised A$25 million through a placement to institutional and sophisticated investors, which will go into the war chest for ongoing development activities at the Bowdens Silver Project and broader exploration efforts across New South Wales.
Strong support from international funds
Managing director Jo Battershill said: “We are very pleased to have secured funding of $25 million with strong support from a number of large, global institutional funds.
“On behalf of the Board of Directors, I would also like to thank our shareholders for their ongoing support.
“Despite what has been a turbulent period on the back of the recent Court of Appeal decision, the strong demand in the placement confirms the support for our Bowdens Silver Project.”
Proceeds from the placement will be allocated towards:
- advancing development consent approvals and engineering studies for the Bowdens Silver Project;
- community and freehold purchases, including property, water and biodiversity rights;
- exploration programs aimed at resource growth, particularly at the Bara Creek Prospect and Tuena Project;
- business development opportunities; and
- general working capital.
The placement, priced at A$0.092 per share, represented a 9.6% discount to the five-day volume-weighted average trading price as of December 5.
Strong demand from new and existing investors ensured the placement exceeded the company’s funding target.
Participants will receive free options on a one-for-three basis, exercisable at A$0.1196 per option and expiring on June 17, 2026.
The new shares, to be issued on December 17, will rank equally with existing ordinary shares.
Petra Capital acted as the sole lead manager and bookrunner for the transaction.
“The market for silver remains very strong with limited new silver development projects scheduled to start up in the next two to three years,” Battershill continued.
“Silver Mines is well positioned with the Bowdens Silver Project continuing to advance through the key studies and expected to gain reinstatement of the development consent required to commence production at the project.”
Debenture agreement ends
As it wrapped up the capital raise, Silver Mines also announced the termination of its interim convertible debenture agreement with Bromma Asset Management and MMCAP International Inc.
The company said equity funding through the placement was a preferred option, offering expedited access to capital and avoiding delays associated with regulatory approvals.