Silver Storm Mining (TSX-V:SVRS) has concluded the first tranche of its private placement, raising $14.6 million ($20.3 million) through the issuance of 29.25 million units at $0.50 each.
‘Strong’ investor demand prompted the company to expand the total non-brokered offering from 30 million units to 42 million units, targeting aggregate gross proceeds of $21 million.
Each unit comprises one common share and half a warrant, with whole warrants exercisable at $0.70 for 18 months from closing.
Investor Eric Sprott, through 2176423 Ontario, led the placement by subscribing for 15 million units worth $7.5 million. Following completion, Sprott’s entity holds 110.8 million shares and 20.8 million warrants. This represents 12.9% of outstanding shares on a non-diluted basis and 15.0% on a partially diluted basis.
Silver Storm notes the participation constitutes a related-party transaction under TSX Venture Exchange policies. Directors determined Sprott’s involvement is exempt from formal valuation and minority shareholder approval requirements, as the $7.5 million consideration and fair market value remain below 25% of the company’s $414 million market capitalisation.
Net proceeds will finance surface and underground drilling programs at its La Parrilla Silver Mine Complex in Durango State, Mexico, alongside general corporate and working capital purposes.
The company expects to close the remaining tranches on or about 28 August, subject to documentation completion and regulatory approvals, including TSX-V consent. Issued securities carry a four-month-and-one-day hold period.
Silver Storm Mining holds advanced-stage silver projects in Durango state, Mexico. It also operates the La Parrilla Silver Mine Complex — featuring a 2,000-tonne-per-day mill and three underground mines — which it is transitioning into production, alongside holding the San Diego Project in Mexico.
Write to Paula Fabe at Mining.com.au
Images: Silver Storm Mining
