Silver Tiger Metals (TSX:SLVR) has closed its bought deal offering for gross proceeds of C$100.05 million ($100.8 million) following the full exercise of the overallotment option.
The company sold 100.05 million units at C$1.00 per unit through a syndicate of underwriters led by Stifel Canada as sole bookrunner and lead underwriter, alongside BMO Capital Markets, Canaccord Genuity, and Desjardins Securities.
Each unit comprises one common share and one-half of one common share purchase warrant. Each whole warrant entitles the holder to acquire one common share at C$1.35 per warrant share for 24 months following closing.
Silver Tiger intends to use the proceeds to fund exploration and development expenditures at its El Tigre Stockwork Zone Project in Sonora, Mexico, as well as for working capital and general corporate purposes.
The financing was completed by way of a short form prospectus in each Canadian province except Québec, and outside Canada in accordance with applicable securities laws.
The company is constructing the El Tigre Stockwork Zone Project, a 100%-owned silver and gold heap leach project covering over 37,000 hectares.
According to Silver Tiger, the financing enables the company to advance development activities at El Tigre as it works toward bringing the heap leach operation into production.
The warrant component provides potential additional funding of up to C$67.5 million if all warrants are exercised at the C$1.35 strike price over the next two years.
Silver Tiger Metals is focused on advancing its 100%-owned El Tigre Stockwork Zone Project in Mexico.
Write to Paula Fabe at Mining.com.au
Main image: Silver Tiger Metals
