Silver Mines placement and SPP to raise $33M

The Australian

06-08-2025

Silver Mines completes $30m placement to institutional and sophisticated investors with a $3m share purchase plan to follow
The placement had strong support from a number of highly credentialled investors both locally and internationally, and demand was in excess of funds raised by the company.
Funds will fast-track Bowdens development and support exploration at US and NSW projects.
Special Report : Silver Mines has raised $30 million through a strongly supported placement to institutional and sophisticated investors and will launch a share purchase plan (SPP) to raise up to an additional $3 million.
Funds will be used to advance development at Bowdens Silver Project in New South Wales and support exploration across Silver Mines' broader portfolio in Australia and the US.
Silver Mines (ASX:SVL) has secured $30 million in a strongly supported placement to institutional and sophisticated investors and will follow that with a $3 million share purchase plan (SPP).
Demand for the Petra Capital managed raise was in excess of funds raised by Silver Mines and well supported by a number of highly credentialled investors within Australia and internationally.
The company will also run an SPP to raise up to a further $3 million, giving eligible shareholders an opportunity to participate in the capital raising as silver prices surge.
Funds will primarily go towards advancing development approvals and engineering studies at Bowdens – Australia's largest undeveloped silver deposit and one of the largest in the world, hosting a reserve of 71.7Moz. It's also one of the most highly leveraged to the silver price across the globe.
Silver Mines will also continue exploration aimed at mineral resource growth across its recently acquired Calico North silver project and the Kramer Hills gold and silver project in the US, as well as its other NSW projects including Bara Creek prospect and Tuena project.
Managing Director Jo Battershill said: 'We are very pleased with the outcome of this placement, which attracted support from a number of high-quality institutional and sophisticated investors both locally and abroad.
'This outcome reflects growing recognition of the significant value and development potential across our portfolio particularly with the Bowdens Silver Project.
'The proceeds will enable us to continue advancing the Bowdens Silver Project through to development, while also accelerating exploration activities in both Australia and our newly acquired assets in the United States.
'With a strengthened balance sheet and a clear focus on execution, Silver Mines is well positioned for the next phase of growth and value creation'
The placement price of $0.12 per share represented a 16.3 per cent discount to the five-trading day volume weighted average trading price to 31 July 2025 and a 7.7 per cent discount to the last trading price of $0.13.
SPP shares will be issued at the same price, with the offer period to open on 13 August. Targeting more growth
Bowden's December 2024 optimisation study demonstrated robust, high-margin economics over 16.5 years. But Silver Mines believes there's strong potential to extend its resource base beyond the optimised pit shell given high-grade historical exploration results.
The company is also keen to progress Calico North and Kramer Hills in California's mining friendly county of San Bernadino.
Both host mineralisation with historical production plus kilometres of untested mineralised structures near surface and at depth, and Silver Mines will start exploration this quarter after completing the deals last month.
Its 100 per cent owned Calico North spans approximately 20 square kilometres across one of the largest historic silver camps in the US and hosts extensive zones of high-grade silver-barite mineralisation.
Barite has recently been classified by the US as a critical mineral given its importance in oil and gas drilling. Most supply currently comes from India and China.
At Kramer Hills, Silver Mines has commenced an earn-in to acquire up to an 80 per cent interest in the asset. Kramer Hills has historic mine shafts extending for more than 4km along the fault zone and a target zone along a mapped fault zone of approximately 7km.
The imminent work program at the US projects will focus on further target generation through mapping and geophysics before drilling starts in 2026.
Silver Mine's broader exploration portfolio includes the Tuena Gold Project in New South Wales, where several drilling targets have already been identified, and an extensive 2,115 kilometre square metre regional tenement across the central area of the state.
The company already had a healthy $19.3 million in cash and no debt before the placement, putting it in a very strong position to pursue development plans post the current raise.
This article was developed in collaboration with Silver Mines, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions. Sponsored
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