Aftermath Silver Ltd (CVE:AAG) (OTCMKTS:FLMZF), a junior explorer with assets in Chile, raised C$3.3 million in a placing and welcomed veteran mining investor Eric Sprott as its largest shareholder.
The Vancouver-based firm has closed a non-brokered private placing of 16.5 million units at C$0.20 each for gross proceeds of C$3.3 million, with Sprott chipping in C$2.98 million.
READ: Aftermath Silver graduates to trading on US OTCQB market
"We are excited to welcome Mr. Eric Sprott as Aftermath's largest investor," said Ralph Rushton, president and CEO at Aftermath.
"We share Mr. Sprott's vision, hence our focus on acquiring advanced-stage silver projects with existing resources. With funding now in place, we're looking forward to demonstrating the potential of our Cachinal and Challacollo projects."
Each unit in the placing consisted of one share and one-half of one share purchase warrant, with each whole warrant exercisable to acquire one share for 36 months from closing at C$0.25 each.
Sprott, via 2176423 Ontario Ltd, a firm beneficially owned by him, acquired over 14.8 million units in the placing for a total consideration of C$2.9 million.
Before the placing, Sprott did not own any Aftermath Silver shares and now holds shares and warrants representing 19.51% of the shares on a non-diluted basis and 26.66% on a partially diluted basis.
Approved for OTCQB
Yesterday, Aftermath said it had been approved to trade on the OTCQB market under the symbol FLMZF. It will continue to trade on the Toronto Stock Exchange Venture under the symbol AAG.
“The increased exposure to US retail and institutional silver investors that this platform provides should generate additional liquidity and allow us to expand our shareholder base," said Rushton.
On Tuesday this week, the TSX Venture Exchange approved its 100% acquisition of Mandalay Resources Corp’s (TSE:MND) Challacollo silver-gold project in Chile for a total of up to C$10 million.