PERTH (miningweekly.com) – Silver explorer Silver Mines has completed a A$12-million capital raise to professional and sophisticated investors, to fund work at its Bowdens silver mine, in New South Wales.
The company will issue 120-million fully paid ordinary shares at a price of 10c each, with the majority of the shares to be placed under Silver Mines’ existing placement capacity.
The placement of 500 000 shares, which have been subscribed for by related parties of the companies, will be subject to shareholder approval at the company’s next general meeting.
“The company is delighted with the outstanding response to the capital raising, it is a clear backing of our quality assets,” said MD Anthony McClure.
“The very positive outlook in precious metals, including silver, is also most encouraging,” he added.
The funds raised under the placement will be used to fund pre-development activities at the Bowdens silver mine, as well as exploration activities over the coming 12 months, including extensional drilling at Bowdens and explorational drilling at the Barabolar project.
McClure noted that initial drilling at the Tuena gold project will also be scheduled for the coming months, while funding would also be made available for land acquisitions and for general working capital purposes.