Silver Mountain Resources Inc. [AMGR-TSXV] said it has upsized a previously announced public offering of units that is now expected to raise over $9.0 million, up from the earlier $7.0 million target. Proceeds from the sale of units, priced at 11 cents, each are earmarked for development of the company’s Reliquias silver mine in central Peru.
Each unit consists of one class A common share and one common share purchase warrant. Each warrant will entitle the holder to acquire an additional common share for 48 months at an exercised price of 13.5 cents.
The selling agents have been granted an over-allotment option to purchase up to an additional 15% of the unit on the same terms at any time up to 30 days after the closing date, which is expected to be April 24, 2024.
If the over-allotment option is fully exercised, the grosss proceeds of the offering will increase to $10.35 million.
Silver Mountain shares were unchanged Friday at $0.09. The shares trade in a 52-week range of 23 cents and $0.06.
Silver Mountain is a silver explorer and mine development company that completed an IPO that raised $26.4 million in February, 2022. The company has said its immediate goal is to re-commence production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirrena Project in Huancavelica, Peru.
Silver Mountain, through its subsidiary Sociedad Minera Reliquias SAC, controls over 27,000 hectares in the Castrovirrena mining district, mostly within the Reliquias and Dorita property blocks. The region is known to host significant metal and polymetallic deposits, including Julcani (101 million ounces of past silver production) and San Genaro (over 60 million ounces of past silver production).
Back in February, 2024, the company announced an updated resource estimate for the Reliquias mine project, and said it planned to complete a preliminary economic assessment by the first quarter of 2024. The company said measured and indicated resources now stand at 1.27 million tonnes of grade 4.34 oz/ton silver, 0.42 g/t gold, 3.14% zinc, 2.06% lead and 0.33% copper.
On top of that is an inferred resource of 1.7 million tonnes of 4.02 oz per ton silver, 0.43 g/t gold, 2.96% zinc, 1.84% lead and 0.28% copper.
The company said the new estimate incorporates 18,586 metres of additional diamond drilling completed in 2023 and 5,247 channel samples collected from rehabilitated underground tunnels.
“Our technical team and our contract partners have worked tirelessly throughout 2023 to deliver this great result for our company, and we look forward to what we expect will be a transformational 2024 for Silver Mountain as we move towards production.,’’ said Silver Mountain President and CEO Alvaro Espinoza.
In November, 2022, the company acquired a 100% interest in the Lira de Plata project from Pan American Silver Corp. [PAAS-TSX, NASDAQ, a move that secured close to 800 hectares of highly prospective ground in the vicinity of Reliquias and consolidating the company’s position in the Castrovirrena mining district.
Continue Reading
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : ResourceWorld – https://resourceworld.com/silver-mountain-upsizes-financing-to-9-0-million/?utm_source=rss&utm_medium=rss&utm_campaign=silver-mountain-upsizes-financing-to-9-0-million