Silver Storm upsizes private placement target to $15 million – Resource World Magazine

Silver Storm upsizes private placement target to $15 million – Resource World Magazine

Silver Storm Mining Ltd. [SVRS-TSXV, SVRSF-OTCQB, SVR-FSE] has announced details of an upsized non-brokered private placement financing that is now expected to raise gross proceeds of up to $15 million. Proceeds are earmarked for its wholly-owned La Parrilla Silver Mine Complex in Durango State, Mexico where the company is working to complete a 15,000-metre drill program that aims to grow the resource footprint while operations ramp up. The announcement comes just days after the company said it was raising $7.5 million from a private placement of 15 million units priced at 50 cents per unit and that a numbered company controlled by financier Eric Sprott was subscribing for the entire offering. On Monday, the company said the upsized private placement will now consist of up to 30 million units priced at 50 cents per unit. Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share at a price of 70 cents for 18 months after closing which is expected to occur by August 25, 2026. “We are excited to add a significant strategic resource investor to our shareholder registry,’’ said Silver Storm President and CEO Greg McKenzie. “Their backing validates the quality of our portfolio and provides additional capital to advance our growth programs,’’ he said. “Together with Eric Sprott’s continued support, this addition to our shareholder registry positions Silver Storm to accelerate its underground and surface drilling program at La Parrilla and its broader initiatives as the company moves forward.’’ Sprott’s previously announced participation remains unchanged by this upsize. Silver Storm shares were unchanged Monday at 50 cents. The shares trade in a 52-week range 79 cents and 20 cents. The company was in the news recently when it shipped the first lead-silver and zinc concentrates from the La Parrilla Silver Mine Complex. The company completed the shipment following initial production using the sulphide processing circuit at the site. The initial cargo consisted of 105 dry tonnes of lead-silver concentrates as well as 70 dry tonnes of zinc concentrate. The delivery was made under a previously announced offtake pre-payment agreement. Situated roughly 76 kilometres south-east of Durango’s capital, La Parrilla, consists of 40 mining concessions covering 38,128 hectares. About two year ago, Silver Storm completed the acquisition of a 100% interest in the La Parrilla Complex, a prolific operation which consists of a 2,000 tonne-per-day mill as well as five underground mines and an open pit that collectively produced 34.2 million silver equivalent ounces between 2005 and 2019.. When placed on care and maintenance in September 2019, La Parrilla was a fully-permitted mine complex. Silver Storm acquired the asset from First Majestic Silver Corp. [AG-TSX, AG-NYSE, FMV-Frankfurt], a company that currently ranks as Silver Storm’s largest shareholder.