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Silver Mines (ASX:SVL) raises $12M for pre-development activities at Bowdens Silver Mine

Mining
ASX:SVL      MCAP $248.8M
27 May 2020 13:45 (AEST)

Silver Mines (SVL) has successfully completed a $12 million capital raise to institutional, professional and sophisticated investors.

The placement will result in the issue of 120,000,000 fully paid ordinary shares at an issue price of $0.10 per share.

“The company is delighted with the outstanding response to the capital raising, it is a clear backing of our quality assets,” Managing Director Anthony McClure said.

Silver Mines will use the money raised to fund pre-development activities at its flagship Bowdens Silver Mine in New South Wales.

The company is planning exploration activities over the coming 12 months, which will include extensional drilling at Bowdens Silver and exploration drilling at the Barabolar Project. Barabolar is located 10 kilometres northwest of the Bowdens Silver Mine.

Initial drilling at the company’s Tuena Gold Project will also be scheduled in the coming months.

Additionally, Silver Mines will use the remaining funds for potential land acquisitions and for corporate and general working capital purposes.

Company shares have dropped 12 per cent and are trading for 11 cents each at 11:34 am AEST.

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