Aftermath Silver Ltd (CVE:AAG) (OTCQB:AAGF) welcomed a new shareholder in the form of Canadian resource-focused merchant bank Palisades Goldcorp.
The junior silver explorer company said Monday that Palisades purchased 7.5 million units at C$0.20 per unit, giving Palisades around 10.4% ownership.
The financing provides Aftermath gross proceeds of C$1.5 million, which will be used primarily for maintenance costs at its Challacollo and Cachinal silver-gold projects in Chile and business development activities.
READ: Aftermath Silver outlines first phase exploration plans for Chile projects
Boasting a portfolio of $100 million worth of equities, Palisades Goldcorp is Canada’s largest resource-focused merchant bank. Other companies in its investment portfolio include Victory Metals (CVE:VMX), Tonogold (OTCMKTS:TNGL) and Goldspot Discoveries (CVE:SPOT).
"We are happy to welcome Palisades Goldcorp as a significant shareholder of Aftermath Silver,” said Aftermath’s chairman Michael Williams in a statement. “Given our pure silver focus and current portfolio of projects we are a good fit for their investment criteria."
Under the terms of the non-brokered private placement, each of the 7.5 million units includes one share and one-half of one warrant exercisable at C$0.25 for a three-year period from the date of issue.
Aftermath’s Challacollo project in Chile houses a historic NI 43-101 resource estimate from 2015 of 4.7 million tons for 30.2 million ounces of contained silver at a grade of 200 grams per ton (g/t) and 48,400 ounces of gold at 0.32 g/t in the higher confidence indicated category. Cachinal has a current NI 43-101 silver resource of just over 22 million ounces.
Contact Angela at angela@proactiveinvestors.com
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