Argenta Silver raises $13 million from upsized bought deal
Argenta Silver Corp. [AGAG-TSXV] said Friday it has raised $13 million from an upsized bought deal private placement financing, marking an increase from an earlier $10 million target. The company said proceeds are earmarked for the exploration and advancement of its 100%-owned El Quevar project in Argentina.
The company said the private placement will now consist of 32.5 million units priced at 40 cents per unit. Each unit consists of one common share, and one half of one transferable common share purchase warrant. Each whole warrant entitles the holder to buy one common share at any time on or before a date which is 36 months after closing, which is expected to occur on August 12, 2025.
The underwriter has been granted an option to purchase for resale up to an additional 5.0 million units at the offering price for additional proceeds of $2.0 million. That option can be exercised up to 48 hours prior to closing.
Argenta shares declined on the news, easing 6.1% or $0.03 to 46 cents, Friday. The shares trade in a 52-week range of 51 cents and 15.5 cents.
The El Quevar Project hosts an indicated resource of 45.3 million ounces of silver at a grade of 482 g/t silver and an inferred resource of 4.1 million ounces of 417 g/t silver, making it one of Argentina’s top three undeveloped silver deposits. Extensively explored between 2008 and 2013 by its previous owner, the project saw limited exploration in recent years. Argenta Silver acquired El Quevar in late 2024 and is now focused on unlocking its full value.
The project remains underexplored with less than 3.0% of the area covered by with comprehensive exploration work. The property boasts exceptional infrastructure with over 60 kilometres of internal roads, a fully owned, fully operational camp for 100 workers, multiple support buildings and proximity to railroad, gas pipeline and transmission line.
Argenta was in the news recently when it announced a strategic investment in the company by prominent Argentine businessman Eduardo Elsztain. Through IFIS, part of the Elsztain Group, he will acquire 25 million shares of Argenta through a private placement of share at 20 cents per share for a total investment of $5.0 million.
Elsztain is recognized as one of Argentina’s most influential business leaders, having one of the largest real assets business conglomerates in Argentina spanning industries, including real estate, agriculture, finance and mining. Most notably, he serves as Chairman and CEO of IRSA [IRS-NYSE]. Argentina’s largest real estate company and CRESUD [CRESY-NASDAQ], a major agribusiness firm operating across South America. He also chairs Banco Hipotecario [BHIP-BASE], one of Argentina’s foremost mortgage banks. It has played a key role in numerous high profile investment and development projects.