Silver Mines plans $70M capital raise
- Silver Mines is seeking to raise $70 million through a two-tranche share placement to institutional and sophisticated investors.
- The placement issue price of $0.145 per share represents a 10.0% discount to the company's 5-day volume weighted average price prior to the offer.
- Net proceeds will fund the development of the Bowdens Silver Project, royalty acquisitions, US exploration, and general corporate working capital.
Silver Mines (ASX:SVL) has launched a two-tranche share placement aiming to raise gross proceeds of $70 million to advance its core development and acquisition targets.
The proposed offer price of $0.145 per share reflects a 10.0% discount compared to the stock's five-day volume-weighted average price up to Sept. 18.
"We are pleased to launch this placement as we continue to advance the Bowdens Silver Project towards development," said Silver Mines Managing Director Jo Battershill.
Under the terms of the equity raise, the company will issue 482,758,621 new fully paid ordinary shares, with 277,733,713 shares allocated unconditionally in the first tranche.
Following the announcement, the Silver Mines share price was unchanged at $0.18.
The company intends to use the capital to progress engineering studies for the Bowdens Silver Project and cover cash consideration for the acquisition of the Fitzroy Royalty and Asia Metals Royalty.
Additionally, funds will support ongoing land access agreements in Australia alongside exploration across the Kramer Hills Project and Calico North Project in the United States.
