Sun Silver seals $13m raise with new cornerstone investor

$13m raising includes $5m investment at premium of 80c
Accelerates development plans for 423Moz silver equivalent resource
SS1 also eyeing off critical antimony and silver paste production

Special Report: Sun Silver welcomes Nokomis Capital to the register and gets on rails for growth at Maverick Springs.

Off the back of a large resource upgrade entrenching it as the bearer of the largest development-ready silver resource on the ASX, Sun Silver (ASX:SS1) has closed a cap raise for $13 million to advance its Maverick Springs flagship in the US state of Nevada.

The raise was comprised of a $8m placement at 62c a share, coming alongside a $5m investment from high profile US investment firm Nokomis Capital at 80c, which became a new cornerstone investor into SS1 at a 10.28pc premium over last close.

The raise leaves Sun Silver well-funded to speed up the development of Maverick Springs by way of metallurgy and explorational, expansional, and infill drilling.

Sun Silver executive director Gerard O’Donovan said the successful raising, inclusive of a premium price, represented a transformational milestone.

“We are excited to welcome all new investors, particularly our strategic cornerstone investor, Nokomis Capital,” O’Donovan said.

“Their investment, along with investment from other global and domestic institutions, positions us for significant growth and acceleration in project development.”

Swelling Maverick Springs

Well known for its long-term strategic approach and record across high growth sectors, Nokomis now has exposure to a resource now standing at 423 million ounces of silver equivalent after a 45pc uplift.

It is a resource marked for further upgrading, particularly after the ASX-listed silver bug validated an extensional thesis of thick, high-grade mineralisation with an 88m strike grading at 79.6g/t silver equivalent.

Sun Silver has also noted upside away from its namesake and sees the potential to become a domestic producer of critical mineral antimony in the wake of Chinese restrictions and high grades revealed in historic core.

There is also potentially Stateside funding to come in for SS1 and Maverick Springs, now on the shortlist for a US$60m tax credit for a sub-project aiming to produce a high-quality silver paste for solar cell production.

This article was developed in collaboration with Sun Silver, 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.