Mithril raises $12.5m to quadruple drilling at Mexican silver and gold project

Mithril Silver and Gold raises $12.5m to ramp up exploration at Copalquin project
Project in district in the prolific Sierra Madre Gold-Silver Trend of Mexico
Company aims to complete 40,000m of drilling next year

Special Report: Mithril Silver and Gold has raised $12.5m via a placement at 50c per share to kick exploration into high-gear at its Copalquin silver project in Mexico.

The placement proceeds will fund completion of the current 9000m drill program to expand the high-grade maiden resource at the Target 1 area of 2.42Mt at 4.8g/t gold, 141g/t silver for 373,000oz gold and 10.95Moz silver (529,000oz gold equivalent).

Funds will also be used to upgrade the access road, for District target advancement and to prepare Target 2 (Las Brujas-El Peru) and Target 3 (Constancia-El Jabali) for drilling in 2025.

The company forecasts it will double total metres drilled in the district by the end of 2025 with an additional, fully funded ~40,000m of drilling.

Expanding exploration, establishing world-class district

Notably, the placement was cornerstoned by Jupiter Gold and Silver Fund who confirmed its recently increased shareholding in the company at 16%, with 1832 Fund (Bank of Nova Scotia) maintaining its shareholding at 8% post placement.

“We are very pleased with Jupiter Gold and Silver and the 1832 Funds’ continued support and welcome several new high quality Australian and global funds to the register,” Mithril Silver and Gold (ASX:MTH) managing director and CEO John Skeet said.

“The funding allows Mithril to considerably expand drilling at Copalquin with additional drill capacity and open up the district for more rapid advancement of exploration work.

“We remain on track for the high-grade resource update at the Target 1 area in Q1 2025, where we aim to greatly expand the current resource and establish at least two further resource target areas by the end of 2025 with ~40,000m of drilling.

“In addition to the resource expansion work, we continue to advance the district geologic model to determine the source of the widespread gold and silver mineralisation across the 70km2 mining district with its 298 historic mines and workings and to establish Copalquin as another world class gold-silver district in the prolific Sierra Madre Gold-Silver Trend of Mexico.”

In addition, company directors have committed to subscribe for $200,000 following earlier 2024 commitments for $672,500.

This article was developed in collaboration with Mithril Silver and Gold, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.