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- Silver Mines (SVL) completes a share placement to raise $18 million for the development of its Bowdens silver project in New South Wales
- Emerging from a trading halt this morning, the company revealed it had received oversubscriptions for a capital raise comprising 112.5 million shares
- Of the placement shares, 312,500 will be issued to directors of the company, subject to shareholder approval
- The funds raised will go towards the progression of the company’s Bowdens project, including pre-development expenses such as exploration
- Company shares resumed trade today and are down 16.7 per cent to 16.3 cents at 12:55 pm AEDT
Silver Mines (SVL) has completed a share placement to raise $18 million for the development of its Bowdens silver project in New South Wales.
Emerging from a trading halt this morning, the company revealed it had received oversubscriptions for a capital raise comprising 112.5 million shares.
The shares were offered at 16 cents, which is a 19.5 per cent discount to the five-day volume-weighted average price of SVL shares.
Of the placement shares, 112,187,500 will be issued using the company’s capacity under ASX rules, while the remaining 312,500 will be issued to directors of the company, subject to shareholder approval.
SVL said the funds would go towards the progression of its Bowdens project, including pre-development expenses such as exploration.
At the end of January, the company announced drilling at Bowden’s had expanded the gold mineralisation footprint in the southern gold zone to 300 metres in strike, 200 metres in width and between 15 to 85 metres in thickness.
SVL said diamond drilling was due to continue into the first half of this year, with two rigs on site.
Silver Lakes said part of the fresh capital would also go towards exploration work at its other projects and corporate and general working capital purposes.
The settlement of the placement is scheduled for Wednesday, February 15.
If approved at the next general meeting of shareholders, the placement shares to Silver Mines’ directors will be issued thereafter.
Silver Mines shares resumed trade today and fell 16.7 per cent to trade at 16.3 cents at 12:55 pm AEDT.
