Aftermath Silver Ltd (TSX-V:AAG, OTCQX:AAGFF) said on Monday it plans to raise up to C$20 million through a brokered private placement, with Canadian mining investor Eric Sprott indicating he may anchor the financing with a commitment of up to C$10 million.
The offering was upsized on Monday afternoon from C$15 million.
The Vancouver-based explorer said it has agreed with Research Capital Corporation as sole bookrunner and co-lead agent, alongside Red Cloud Securities, on a best-efforts offering of up to 22.2 million common shares priced at C$0.90 each.
Sprott, through his company 2176423 Ontario Ltd, has indicated his intention to participate in the offering for up to C$10 million, Aftermath said.
Aftermath said the net proceeds will be used to advance exploration and development work at its Berenguela silver-copper-manganese project in southern Peru, including completion of a pre-feasibility study. Funds will also support exploration at other projects and general corporate purposes.
The offering is expected to close by December 23.