AbraSilver announces $43.4 million bought deal
AbraSilver Resources Corp. [ABRA-TSXV, ABBRF-0TC] has announced details of a $43.4 million bought deal LIFE private placement and will use the proceeds to fund its Diablillos project in Argentina.
The company said a syndicate of underwriters has agreed to purchase, on a bought deal basis, 6.1 million common shares for $7.10 per share, with a right to arrange for substituted purchasers under the listed issuer financing exemption (LIFE). The company has granted the underwriters an option to purchase up to an additional 929,253 shares at the offering price, a move that could boost to gross proceeds by up to $6.59 million. That option can be exercised, in whole or in part, at any time up to 48 hours prior to closing, which is expected to occur by October 22, 2025.
In addition to and concurrent with the offering, the company may complete a private placement offering of shares at the offering price pursuant to a participation right held by Kinross Gold Corp. (K-TSX, KGC-NYSE) and Proener Sau (Central Peru). Should the underwriters’ option be exercised, Kinross and Central Puerto will have the option to purchase additional shares under the concurrent private placement in accordance with the participation right.
On Tuesday, the shares eased 7.1% or 53 cents to $6.94. The shares currently trade in a 52-week range of $ 8.09 and $2.22.
The company intends to use the proceeds of the offering to finance early development expenditures at its Diablillos projcct, including on-site infrastructure, securing critical long-lead-time items, advanced engineering and exploration programs in support of advancement of the 100%-owned Dablillos silver-gold project.
The 80 square kilometre Diablillos property is located in the Argentina Puna region – the southern extension of the Altiplano of southern Peru, Bolivia and northern Chile. The project was acquired from SSR Mining Inc. [SSRM-TSX, NASDAQ, SSR-ASX] in 2016.
In a press release on September 12, 2025, the company announced the filing of a technical report for an updated mineral resource estimate.
The current measured and indicated indicated resource estimate for Diablillos (tank leach only) consists of 73.1 million tonnes grading 79 g/t silver and 0.66 g/t gold, containing approximately 186 million ounces of silver and 1.6 million ounces of gold, with significant further upside potential based on recent exploration drilling
AbraSilver aims to complete a definitive feasibility study by the first quarter of 2026, with ongoing exploration indicated further resource expansion potential.
The company aims to complete the study following the approval of the Environmental Impact Assessment (expected in the fourth quarter of 2025), and qualification of the Diablillos project under Argentina’s RIGI law. The Diablillos project is expected to advance to a construction decision in the second half of 2026.