Silver Mines Ltd (ASX:SVL, OTC:SLVMF) has secured A$30.2 million in funding (before costs) having entered into a binding interim convertible debenture agreement with Bromma Asset Management Inc. a specialised investment firm led by Harry Lundin, Rick Rule and MMCAP International Inc. SPC.
“We are thrilled to announce the $30.2 million convertible debenture with Bromma Asset Management Inc. This funding is a significant milestone for Silver Mines as we continue to advance our Bowdens Silver Project,” Silver Mines managing director Jo Battershill said.
“The financial support underscores the strong potential of our project and the confidence in our team," he said.
"This convertible debenture is particularly advantageous for our shareholders as it is less dilutive compared to a traditional placement. The conversion price is set at a significant premium to the last trading price, which reflects the value and future potential of our project.
“This structure allows us to secure necessary funding while minimising dilution and preserving shareholder value.
"We look forward to leveraging this investment to accelerate our development and exploration activities and bring the Bowdens Silver Project to fruition, ultimately delivering significant value to our shareholders.”
Progress at Bowdens
A couple of weeks ago, Silver Mines conducted a seismic survey over the Bowdens Silver Deposit, identifying several new potential caldera structures within the Rylstone Volcanics belt near Mudgee in Central West NSW, akin to those hosting the existing 396 million-ounce silver resource on the project.
The company is now concentrating on five distinct modelled calderas - three within the Bowdens Caldera and two within the Coomber Volcanic Complex, which encompasses the Coomber prospect.
As progress at Bowdens continues towards development, there are a number of important catalysts on the horizon.
Silver Mines will use the funds from the Convertible Debentures predominantly for the following:
- drilling;
- engineering studies for the definitive feasibility study;
- pre-construction activities; and
- general & administrative costs for the Bowdens Silver Project.