Australian resource company Silver Mines (ASX:SVL) has raised $18 million before costs in a placement aiming to raise capital to progress the Bowdens Silver Project in central western New South Wales.
The company says this amount was raised from institutional, professional, and sophisticated investors, and notes the demand for the placement was well in excess of the funds raised.
Silver Mines reports the placement was conducted at an issue price of $0.16 per share, which represents a 19.5% discount to the 5 day volume weighted average price (VWAP) for fully paid ordinary shares in the company.
This placement will result in the issue of 112.5 million fully paid ordinary shares, with over 112.187 million shares being issued using the company’s capacity under ASX Listing Rule 7.1, and 312,500 shares will be issued to the directors of the company or their nominees subject to shareholder approval.
The company reports settlement of the placement is expected to take place on 15 February 2023, and the expected date of quotation of the shares being issued to investors who are not directors is 17 February 2023.
Shares to be issued to the company’s directors and their nominees will be issued immediately after a general meeting, subject to shareholder approval.
Silver Mines reports the funds raised in the placement will be used primarily for progression of and pre-development expenses including exploration at the Bowdens project. Funding will also be made available for exploration activities at the company’s other projects, as well as for corporate, and general capital purposes.
Silver Mines is an Australian public resource company focused on its flagship Bowdens Silver Project located near Mudgee in New South Wales.
The project covers an area of 9,224 hectares, and hosts a measured, indicated, and inferred resource of 128 million tonnes @ 40g/t silver (Ag), 038% zinc (Zn), and 0.26% lead (Pb) using a 30g/t silver equivalent (AgEq) cut-off grade.
Other projects held by the company include the Tuena Project near Orange, and the Barabolar Project near Mudgee.