Silver Mines Ltd (ASX:SVL, OTC:SLVMF) has added $8 million to the bank following a successful share placement to institutional, professional and sophisticated investors, with demand well in excess of funds raised by the company.
Placement shares were offered at an issue price of $0.135 per share, with Canaccord Genuity and Jett Capital Advisors LLC acting as joint managers.
SVL has also opted to open a share purchase plan (SPP) to raise up to $2 million from existing shareholders under the same terms of the placement, allowing shareholders to participate in the capital raise.
Bowdens Silver Project
The funds from the capital raise will go to developing the Bowdens Silver Project in Central West NSW.
The fresh capital will enable SVL to update the Bowdens mineral resource and reserve estimate later this year, complete a feasibility optimisation study expected to materially enhance the project’s economics and continue to explore for resource growth across the company’s NSW tenements.
The project currently holds an ore reserve of 29.9 million tonnes at 69.0 g/t silver, 0.44% zinc and 0.32% lead, and a mineral resource estimate of 128 million tonnes at 40 g/t silver, 0.38% zinc and 0.26% lead.
Placement details
The placement was conducted at an issue price of $0.135 per share, being a 19.2% discount to the five-day volume weighted average price for fully paid ordinary shares in the company.
This will result in the issue of 59,259,260 fully paid ordinary shares to be issued using the company’s capacity under ASX Listing Rule 7.1.
Settlement of the placement is expected to take place on Thursday, February 8, 2024, and the expected date of issue of the new shares to investors is Friday, February 9, 2024.
SPP details
Shares under the SPP will be issued at the same price as shares in the placement.
The SPP offer period will open on Tuesday, February 13, 2024, and is expected to close at 5:00pm (AEDT) on Tuesday, March 5, 2024.
As the SPP is not fully underwritten, the SPP may raise more or less than $2 million. If the SPP raises more than $2 million, Silver Mines may decide in its absolute discretion to accept applications (in whole or in part) that result in the SPP raising more than $2 million.
In the event that less than $2 million is applied for under the SPP by eligible shareholders, the directors will in their absolute discretion seek to place that number of SPP shares at the SPP issue price to raise $2 million when combined with the amount raised under the SPP.