Silver Mines Ltd (ASX:SVL, OTC:SLVMF) has closed its Share Purchase Plan (SPP), having raised $6 million before costs.
The SPP attracted significant interest and followed a share placement that raised A$8 million before costs, significantly exceeding its A$2 million target.
The demand for both the Placement and the SPP, highlights the strong support and loyalty of Silver Mines' shareholder base.
As a result, Silver Mines will issue 44,444,854 new fully paid ordinary shares, constituting approximately 3.04% of the company’s current issued capital.
The SPP shares are set to be issued at A$0.135 each, matching the placement share price, on March 12, 2024,.
Due to the strong response, some scale-back of applications was necessary, applied on a pro-rata basis in line with the SPP Offer Booklet's terms.
Enhancing project economics
The funds raised will go to developing the Bowdens Silver Project in Central West NSW, where the company is looking to update the Bowdens mineral resource and reserve estimate later this year.
SVL will also 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.