Silver Mines Ltd. will raise AU$70 million in a two-tranche placement to accelerate development of its Bowden silver project in New South Wales.
Under the offer, Silver Mines will issue approximately 482.8 million new fully paid ordinary shares at 14.5 cents per share.
Proceeds from the capital raise will primarily support the company’s flagship Bowdens silver project in New South Wales, the largest undeveloped silver deposit in Australia. Funds are earmarked to advance regulatory approvals, progress final engineering designs, and fund ongoing property purchases and land access agreements.
A portion of the net proceeds will also cover cash considerations for acquiring the Fitzroy Royalty and Asia Metals Royalty.
Additionally, the funding will drive exploration activities aimed at mineral resource growth across Silver Mines’ broader portfolio, including the Kramer Hills and Calico North projects in the United States and the Tuena Project in New South Wales.
“We are pleased to launch this placement as we continue to advance the Bowdens silver project towards development,” said Silver Mines Managing Director Jo Battershill.
“Bowdens remains our primary focus, and we are continuing to build momentum across the development consent process.
“At the same time, we see significant value in maintaining exploration momentum across our broader portfolio and continuing to assess opportunities that can enhance the company’s growth and long-term value.
“This placement is intended to provide the company with the funding and flexibility to pursue these priorities while maintaining a disciplined approach to capital allocation.”
The placement is structured across two tranches. Tranche 1 will unconditionally issue 277.7 million shares, with settlement expected on September 28. Tranche 2, comprising 205.0 million shares remains subject to shareholder approval at the company’s annual general meeting on November 26.
