Silver Hammer Mining (CSE:HAMR) and Stroud Resources (TSX-V:SDR) are seeking up to C$10 million ($10.03 million) to support their proposed three-way merger with SilverMark Resources.
The brokered private placement will comprise between 26.9 million and 38.5 million SilverMark subscription receipts priced at C$0.26 each, raising between C$7 million and C$10 million.
Red Cloud Securities is acting as lead agent and sole bookrunner, with investor Eric Sprott expected to participate and become a cornerstone shareholder of the merged company.
SilverMark has also granted the agents an option to sell a further 7.7 million subscription receipts, potentially raising an additional C$2 million.
Each receipt will ultimately convert into one post-consolidation share in the resulting company and one warrant. Each warrant will be exercisable at C$0.38 for 36 months from the financing’s closing date.
The proceeds will be held in escrow until the conditions for the merger have been satisfied or waived. Investors will receive their funds and a proportionate share of any interest if the conditions are not met by 31 October 2026, unless the deadline is extended.
Silver Hammer entered definitive agreements in July to acquire all outstanding shares of Stroud and SilverMark through separate three-cornered amalgamations.
Before completing the transaction, Silver Hammer says it will consolidate its shares on a one-for-four basis.
The merged company will be renamed Silver Frontier Resources and remain listed on the Canadian Securities Exchange, while Stroud will delist from the TSX Venture Exchange.
Proceeds from the placement will fund exploration and advancement across the combined silver portfolio, along with working capital and general corporate expenditure. The financing is expected to close around 15 October, subject to shareholder and regulatory approvals.
The combined portfolio will include Silver Hammer’s US projects — Silver Strand Project in Idaho, and Eliza and Silverton projects in Nevada — alongside Stroud’s Santo Domingo Silver-Gold Project in Mexico and SilverMark’s indirect interests in Moroccan assets, including the Akka Mine Silver and Polymetallic Project.
Write to France Pinzon at Mining.com.au
Images: Silver Hammer Mining
