Bear Creek Mining raises $30 million for Peru silver

Bear Creek Mining Corp. [BCM-TSXV, Lima] said Wednesday January 6 that it is raising $30 million from a bought deal offering of 10 million common shares, priced at $3 each. Proceeds are destined for the company’s Corani silver project in Peru.

The company said it has granted the underwriting syndicate led by Stifel GMP an overallotment option to purchase an additional 1.5 million shares at the offering price, potentially raising the gross proceeds of the offering to $34.5 million.  That option is exercisable for 30 days after the closing of the offering.

Bear Creek is Peru-focused silver exploration and development company with significant leverage to silver prices.

The company’s flagship Corani property is an advanced stage project that hosts one of the largest undeveloped silver deposits in the world. Bear Creek has said it is continuing to advance and de-risk the Corani Project and will consider a production decision when market conditions are right. Corani contains in excess of 250 million ounces of silver, 2.7 billion pounds of lead, and 1.8 billion pounds of zinc.

Proven and probable reserves at the site are expected to support average annual payable metal production of 9.6 million oz silver, 98 million lbs lead and 69 million lbs zinc over a 15-year life.

The project has received all key permits required to commence construction.

Ore production will be from three distinct open pits – the Este, Minas and Main pits. The Este Pit contains the highest silver grade and will account for the majority of ore produced the first three years.

On Wednesday, Bear Creek shares were off 10% or $0.33 to $2.95 on volume of 322, 151. The shares are currently trading in a 52-week range of $4.17 and 75 cents.