PERTH (miningweekly.com) – Silver developer Silver Mines has completed an A$18-million capital raise to progress work at its Bowdens silver project, in New South Wales.
The ASX-listed company on Friday reported that it had completed a share placement to institutional, sophisticated and professional investors, issuing 112.5-million shares at a price of 16c each.
The shares will be issued in two tranches, with the first 112.18-million shares to be placed under the company’s existing placement capacity, while the remaining 312 500 shares will be issued to directors in the company subject to shareholder approval at the company’s next general meeting.
The placement price of 16c a share represented a 19.5% discount to Silver Mines’ five-day volume weighted average share price.
Silver Mines on Friday told shareholders that the funds raised would be used to progress the Bowdens silver project, including to fund exploration work at the project, as well as to fund exploration at the company’s other projects, and to fund corporate and general working capital expenses.
Silver Mines last year reported a maiden mineral resource of 42.9-million ounces of silver equivalent at the Bowdens underground project, and the company is now working on a scoping study that will consider potential underground mining scenarios beneath the planned openpit development which is currently before the New South Wales Department of Planning and Environment.