Andean Silver Ltd. has raised AU$40 million through a share placement, with the funding going into economic studies and production restart plans at its Cerro Bayo silver-gold project in Southern Chile.
The company issued 16.3 million shares at AU$2.45 per share. The capital injection boosts Andean’s pro-forma cash reserves to approximately AU$82.7 million.
Proceeds will be deployed toward an exploration and development campaign, including running six drilling rigs to expand and upgrade the existing mineral resource.
The company also plans to fund early works for a potential restart at Cerro Bayo, including mill refurbishments, underground dewatering, and general infrastructure upgrades to leverage the site’s existing processing facilities.
Andean Managing Director Matt Allen said the successful raise provides a powerful platform for simultaneous resource growth and commercial development.
“The highly successful Placement puts Andean in an extremely strong position to create further growth on several fronts at the same time,” Allen said.
“Our strong cash position will enable us to undertake economic studies and production restart activities. This work will give us another avenue of value creation as we demonstrate the production and cashflow potential of Cerro Bayo.”
The company is targeting the release of a scoping study in early 2027, followed by a full feasibility study and maiden ore reserve by the end of next year.
Greenfield permitting is also underway for more than 200 drill pads across the prospective Juanita to Droughtmaster corridor.
The Cerro Bayo silver-gold project currently hosts Indicated and Inferred Mineral Resources of 20 million tonnes at a grade of 211 grams per tonne for 136 million ounces of contained AgEq.
“Cerro Bayo has so many distinct advantages, ranging from its high grades and huge exploration upside to the highly valuable infrastructure and beneficial mix of silver and gold,” Allen said.
