Eric Sprott ups equity stake in Aftermath Silver
Aftermath Silver Ltd. [AAG-TSXV, AAGFF-OTCQB, FLM1-FRA] said financier Eric Sprott is increasing his equity stake in the company via a non-brokered private placement that is expected to raise $5 million. The placement consists of up to 14.3 million units to be sold for 35 cent each.
The company said each unit will consist of one common share and one half of one transferable common share purchase warrant, each of which can be used to acquire one additional common share for two years from the date of issuance at 45 cents per warrant share.
An Ontario numbered company controlled by Sprott intends to subscribe for the entire amount.
Aftermath intends to use the net proceeds for geological, metallurgical and engineering studies at the company’s Berenguela silver-copper-manganese project in Puno province, southern Peru.
Aftermath recently said a targeted follow-up campaign of 4,000 metres of diamond drilling has started at the Berenguela project. It said the drill program has three main objectives. The first is the upgrade part of the inferred resources to measured or indicated primarily on the western and northern margins of the known mineralization
Berenguela hosts a potentially open-pittable silver-copper-manganese resource located close to Santa Lucia. The company posted a resource estimate in March 2023, based on over 300 core and RC holes. At that time, measured and indicated resources stood at 40.2 million tons of grade 78 g/t silver, 6.10% manganese, 0.67% copper, 0.34% zinc. That amounts to 101.2 million ounces of silver, 2.45 million tonnes of manganese, 589 million pounds of copper and 299.2 million pounds of zinc.
Drill crews aim to further define the mineralization between the western and central areas and to drill untested areas in the south-east zone of the known mineralization in an area where historic drilling encountered high copper grades in the main area of mineralization.
The company said the drilling contactor will be using a D8oo drill rig which requires less site preparation and can drill in areas of steeper topography which were not accessible in the 2021 to 2022 campaign. Aftermath said it intends to update the resource inventory at Berenguela during 2025.
The company has an option to acquire a 100% interest in Berenguela through a binding agreement with SSR Mining Inc. [SSRM-TSX, NASDAQ, SSR-ASX].
Aftermath is a leading Canadian junior exploration company with a focus on silver. It has developed a pipeline of projects at various stages of advancement. The portfolio includes a 100% stake in the Challacollo silver-gold project in northern Chile, where the company is currently completing environmental permitting in anticipation of an upcoming drill program.
Aftermath Silver shares advanced on the news, rising 1.26% or $0.005 to 40 cents. The shares trade in a 52-week range of 44 cents and 14.5 cents.