Silver Mines on track for progress after $25m placement

Silver Mines has completed a $25m placement to institutional and sophisticated investors, both local and international
The funds raised will be used predominantly to progress the company’s 100% owned Bowdens Silver Project
Silver Mines is also continuing exploration for resource growth across its NSW tenements including the Bara Creek prospect and Tuena project

Special Report: Silver Mines is fast-tracking its progress at the Bowdens Silver Project in NSW’s Central Tablelands after completing a $25 million placement.

In a major sign of confidence in the project the Petra Capital-led placement attracted strong support from highly credentialled new and existing investors, both local and international.

With a massive current MRE of almost 200Moz silver, plus some useful credits from zinc and lead, Bowdens is Australia’s largest undeveloped silver deposit and one of the largest in the world.

Silver Mines (ASX:SVL) will use the funds predominantly for development consent approvals and engineering studies for Bowdens, as well as water and biodiversity rights and land access agreements.

Some of the money raised will also be put towards business development endeavours including continued exploration for resource growth across the company’s NSW tenements including the Bara Creek prospect and Tuena project.

Silver Mines managing director Jo Battershill said: “We are very pleased to have secured funding of $25 million with strong support from a number of large, global institutional funds.

“On behalf of the Board of Directors, I would also like to thank our shareholders for their ongoing support.

“Despite what has been a turbulent period on the back of the recent Court of Appeal decision, the strong demand in the placement confirms the support for our Bowdens Silver Project. This support is a direct reflection of the substantial potential [of the project].

“The market for silver remains very strong with limited new silver development projects scheduled to start up in the next two to three years.

“Silver Mines is well positioned with the Bowdens Silver Project continuing to advance through the key studies and expected to gain reinstatement of the development consent required to commence production at the project.”

Clear pathway

The placement follows last week’s news that the NSW Minister for Planning and Public Spaces Paul Scully legislated important amendments to the Environmental Planning and Assessment Act 1979 (NSW).

Importantly for Silver Mines, the amendments help to reinstate the general approach taken to the planning assessment of State Significant Development projects, such as Bowdens, prior to the Court of Appeal’s decision to set aside the project’s development consent that was provided by the NSW Independent Planning Commission (IPC).

It means the company has a clear pathway, in consultation with the NSW Department of Planning, Housing and Infrastructure, to seek reinstatement of the development consent for Bowdens.

Silver Mines is now working on its existing development application with the DPHI and other government departments.

The company is also continuing progress on an optimisation study aimed at further minimising the project’s environmental footprint.

Given silver’s importance to the clean energy transition, the project aligns closely with the NSW Government’s Critical Minerals and HighTech Metals Strategy.

How the placement works

Settlement of the placement is expected to take place on Monday, December 16, 2024, with new shares and new options expected to be issued on or around Tuesday, December 17, 2024.

The placement will result in the issue of 271,739,135 fully paid ordinary shares at $0.092 per share representing a 9.6% discount to the five-trading day volume weighted average trading price to December 5, 2024.

Participants in the placement will also receive free options on a one-for-three basis, with each new option being exercisable at $0.1196 and expiring 18 months from the date of their issue.

This article was developed in collaboration Silver Mines, 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.