Silver Tiger Metals (TSX:SLVR) has announced a C$87 million ($87.08 million) bought-deal financing as capital costs for its El Tigre Project in Mexico increase to US$124 million ($174 million).
The company has agreed with Stifel Nicolaus Canada and a syndicate of underwriters to issue 87 million units at C$1 each. Each unit comprises one common share and half a warrant, exercisable at C$1.35 per share for 24 months from closing.
Underwriters hold a 30-day over-allotment option for a further 15%, which could lift gross proceeds to about C$100 million. The offering is scheduled to close on or about 13 October 2026.
Net proceeds will fund exploration and development at the silver-gold project in Sonora, Mexico, plus working capital and general corporate purposes.
The updated capital expenditure estimate for the mine and process plant at the Stockwork Zone is about US$124 million, up US$37 million from the initial estimate in the company’s 2026 technical report.
That comprises about US$108 million under the engineering, procurement, and construction management contract with Kappes, Cassiday & Associates, Cassiday del Norte, plus US$16 million managed directly by Silver Tiger.
As at 10 September 2026, the company had contractually committed about US$81 million, or 66% of total estimated capex, and incurred about $US17 million towards those requirements.
Following the offering, Silver Tiger expects a pro forma cash balance of C$173 million, comprising C$90 million in current cash and C$87 million in gross proceeds, less C$4 million in underwriters’ commission.
After funding the estimated remaining capex of C$150 million, the company anticipates excess cash of C$23 million. If the over-allotment option is exercised in full, pro forma cash would rise to about C$185 million and excess cash to C$35 million.
CEO Glenn Jessome says construction is progressing toward production, adding that “commissioning and first pour are targeted for December 2027”.
Silver Tiger Metals is a Canadian silver-gold developer advancing a portfolio of precious metals and assets in Mexico.
Write to JC Villarba at Mining.com.au
Images: Silver Tiger Metals
