PERTH (miningweekly.com) – ASX-listed Silver Mines will raise A$3.85-million through a rights issue to fund exploration at its Barabolar project, in New South Wales.
The company on Friday announced it will undertake a one-for-four renounceable pro-rata entitlement offer, priced at 3c a share, to raise the funds.
Eligible shareholders will also receive one free attaching new option for every two new shares subscribed for, which will have an exercise price of 6c each and an expiry date three years from issue.
Based on the capital structure of Silver Mines currently, a maximum of 128.2-million new shares, and 64.1-million new options will be issued under the offer, meaning that existing shareholders could have their interest in the company diluted by as much as 20%.
However, Silver Mines noted on Friday that the offer fell within the company’s current placement capacity, and will not require shareholder approval.
Funds raised will go towards an upcoming 7 500 m drilling campaign and Barabolar, as well as towards the completion of the Bowdens Silver environmental-impact statement, associated feasibility work and working capital purposes.