Silver Mines Ltd. secured a A$10 million placement and plans to use a portion of the proceeds for exploration including drilling at its Bowdens and Barabolar silver-lead-zinc projects in New South Wales, Australia.
The offering will comprise 100 million shares at 10 Australian cents apiece, according to a Sept. 9 news release. Settlement and the issuance of shares are expected Sept. 13.
Funds will also go toward completing an environmental impact statement for Bowdens, associated land acquisitions, and corporate and general working capital purposes.
Patersons Securities Ltd. acted as lead manager to the placement, which was supported by institutional shareholder Sprott Asset Management LP and other institutions locally and overseas.
In December 2018, Silver Mines updated an agreement with Thomson Resources Ltd. to earn up to an 80% interest in license EL 7391 by funding A$380,000 of expenditures over three years, increasing from the previously agreed A$300,000. The license is about 10 kilometers west of Bowdens.
