Silver Tiger closes $100 million bought deal financing
Silver Tiger Metals Inc. [SLVR-TSXV, SLVTF-OTCQX] said it has closed a $100 million bought deal financing. The amount raised included the full exercise of the underwriters’ over-allotment option, resulting in the sale of 100 million units priced at $1.00 per unit. Each unit consists of one common share and one-half of one warrant. Each warrant shall be exercisable into one common share at a price of $1.35 per warrant share for an exercise period of 24 months from closing.
Silver Tiger shares were active on the news, easing 5.8% or $0.05 to 80 cents. The shares trade in a 52-week range of $1.42 and 63 cents.
Silver Tiger is constructing the El Tigre Stockwork Zone project, a silver and gold heap leach project located in Sonora, Mexico. The project is 100%-owned by Silver Tiger and covers 37,000 hectares.
On March 18, the board of directors of the company approved the construction decision for the stockwork zone at the project and in the same month, entered into an engineering and procurement and construction management contract (EPCM) with Kappes Cassiday & Associates.
The updated estimated capex for the project is now approximately US$124 million (an increase of approximately US$37million from an initial estimate effective as of June, 2025). The updated estimate consists of US$108 million under the EPCM and approximately US$16 million managed directly by the company.
The company attributed the increase to cost escalation in the mining industry over the last couple of years, which contributed an estimated 10% to the current capex estimate. Silver Tiger said it had conducted additional geotechnical drilling, and on the basis of that analysis, added approximately US$25 million to the scope of the earthworks. The increase has also been attributed to the cost of major equipment, including crushing plant, Merrill Crowe precipitate circuit, and conveying and stacking systems.
“Our focus remains on construction of our heap leach mine at El Tigre with first gold pour to be in December, 2027’’ said Silver Tiger President and CEO Glenn Jessome. “I am pleased to confirm we are on schedule for pouring that first dore bar.’’
Earlier this year, the company announced the results of a preliminary economic assessment (PEA) for the underground and an updated pre-feasibility study (PFS) on the Stockwork Zone at El Tigre.
The PEA envisages a 15-year underground mine life with 3.0-year historical tailings processing, recovering 38 million payable silver equivalent (AgEq) ounces or 453,000 gold equivalent ounces (AuEq), consisting of 34 million ounces of silver and 130,000 ounces of gold.