Silver Mines (ASX:SVL) has entered into an agreement with Canadian investment firm Bromma Asset Management, Rick Rule, and MMCAP International, securing $30.2 million in funding for its Bowdens Silver Project in New South Wales.
Under the binding interim convertible debenture agreement, Silver Mines will issue 30,200 convertible debentures valued at $1,000 each. The holders can convert all or any of the debentures into ordinary shares at $0.22 per share, representing a 33% premium to the last trading price of $0.165.
Silver Mines, which has a market capitalisation of $248.82 million, says the issue of the convertible debentures are subject to definitive agreements and receiving the foreign investment review board approval.
After raising the funds under the convertible debentures, the funds will be used to conduct drilling, engineering studies for a Definitive Feasibility Study, pre-construction activities, and general working capital costs.
Managing Director Jo Battershill says this funding is a “significant milestone” as the company continues to advance its Bowdens Project.
“The financial support underscores the strong potential of our project and the confidence in our team,” he says.
“This convertible debenture is particularly advantageous for our shareholders as it is less dilutive compared to a traditional placement. The conversion price is set at a significant premium to the last trading price, which reflects the value and future potential of our project.
“We look forward to leveraging this investment to accelerate our development and exploration activities.”
Silver Mines has appointed SCP Resource Finance as its advisor.
The Bowdens Silver Project lies in central New South Wales and covers 2,115km2.
Write to Aaliyah Rogan at Mining.com.au
Images: Silver Mines
