Silver Mines Limited (ASX: SVL) announced that it has successfully completed a capital raising of A$3.0 million (before costs) (“Placement”) to institutional, professional and sophisticated investors. The placement was successful as it was fully subscribed and conducted at an issue price of $0.05 per share, with participants receiving one SVLOB option ($0.06 exercise price, expiry September 6, 2021) for every two stocks for which they subscribed.
Under the company’s capacity under ASX Listing Rule 7.1, the placement will result in the issue of 60,000,000 shares and 30,000,000 options. The funds raised under the placement will be primarily used for funding exploration at the Barabolar Project, the completion of the Environmental Impact Statement for the Bowdens Silver Project and general working capital purposes.
There was an introduction of new institutional shareholders along with the support of existing shareholders, including Managing Director of the company, Mr. Anthony McClure, who has committed to subscribe for A$150,000 under the placement, with such participation to be subject to shareholder approval in accordance with ASX Listing Rule 10.11.
It is expected that the settlement of the placement will take place on April 4, 2019. With this announcement, Silver Mines has requested ASX that the halt on trading (since March 27, 2019) in its securities to be lifted with immediate effect.
As per the release, a 2,800-meter drilling program is scheduled to start next week at the high priority Cringle Gold Prospect within the wider Barabolar Project. On March 20, 2019, it was announced that the recent work highlighted an 800-metre strike length of high-grade Silver (Ag) and Gold (Au) in outcrop at up to 107 g/t silver and 5.9 g/t gold. There were two other important anomalies identified to the north of these structures that are currently being mapped and sampled.
As per announcement on March 26, 2019, the company will conduct further works on the recently identified high-grade gold targets at Tuena, which is a historical gold mining district with a cluster of 14 historic gold mines and workings mapped over an area of 6 km by 4 km.
On March 20, 2019, the company announced its commencement of drilling at a high priority Cringle Au-Ag prospect, where the first result is expected in the month of April-May of the year 2019.
At the time of writing (on March 29, 2019, AEST 03:33 PM) the stock of Silver Mines was trading at $0.055, down 5.172% with the market capitalisation of ~$37.18 million. It touched day’s high at $0.056 and day’s low at $0.051 with a daily volume of more than 3,577,956. Its 52 weeks high was at $0.068 and 52 weeks low at $0.024 with an average volume of 1,708,581. Its absolute return for five years, one year and six months are -50.24%, 42.16%, and 107.14%, respectively.
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