Silver Mines completes $26M royalty buyback

• Silver Mines completed the acquisition and extinguishment of two private royalties over the Bowdens Silver Project.
• The transaction cost $26 million, consisting of $18 million in cash and $8 million in shares.
• The deal removes third-party royalty obligations to increase direct exposure to project returns.

Silver Mines (ASX:SVL) has finalised a $26 million transaction to acquire and extinguish two private royalties over its 100% owned Bowdens Silver Project.

The completed buyback directly follows the company's prior announcement on Sept. 21 detailing plans to simplify the asset's commercial structure.

"The completion of the Royalty Buy-Backs is a significant milestone for Bowdens and further simplifies the commercial structure of the Bowdens Project," said Silver Mines Managing Director Jo Battershell.

To fund the deal, the company paid $18 million in cash and issued $8 million in new ordinary shares priced at $0.145 per share.

Following the announcement, the Silver Mines share price was down at $0.137.

The transaction completely removes two private royalty interests tied to exploration licence EL5920.

The company stated that eliminating these ongoing royalty obligations will better position the project for its upcoming stages of development.