Join our daily newsletter At The Bell to receive exclusive market insights
- Precious metals explorer Silver Mines (SVL) is $30 million richer after completing a placement
- The materials stock offered over 136 million shares to investors at 22 cents each — a 13.6 per cent discount to SVL’s five-day volume-weighted average price
- Silver Mines will use the funding to develop the Bowdens Silver Project in New South Wales — Australia’s largest undeveloped silver deposit
- While the project is still under exploration, a mineral resource has forecast it holds 163 million ounces of silver
- In late 2020, the explorer kickstarted a 10,000-metre drilling campaign at the asset, and the first high-grade results were reported in January
- On the back of the fundraising news, SVL shares are down 9.09 per cent to 25 cents
Precious metals explorer Silver Mines (SVL) is $30 million richer after completing a capital raising.
Recently, the materials stock opened a placement to institutional, professional and sophisticated investors as it advances one of the world’s largest undeveloped silver deposits.
Under the placement, SVL issued over 136 million fully paid ordinary shares at 22 cents each — a 13.6 per cent discount to the company’s five-day volume-weighted average price.
Ultimately, the cash injection will support Silver Mines as it progresses its flagship Bowdens Silver Project towards production. Currently, the New South Wales-based asset is under exploration but is estimated to hold 163 million ounces of silver.
Spanning over 2000 square kilometres, Bowdens clocks in as Australia’s biggest undeveloped silver deposit. So far, SVL has completed a feasibility study and submitted a development application and environmental impact statement for the asset.
In late 2020, the explorer kickstarted a 10,000-metre drilling program at the tenement and has since received a suite of high-grade results.
SVL’s latest drilling update unveiled strong intercepts, such as 26.1 metres at 2526/t silver equivalent, including 202g/t silver, 0.31 per cent zinc and 1.01 per cent lead from 229 metres downhole.
Following today’s announcement, SVL shares emerged from their trading halt. Company stock is down 9.09 per cent, trading at 25 cents per share at 11:51 am AEDT.
