Eric Sprott set to be “control person” at Aftermath Silver, shares rise

Aftermath Silver Ltd. [AAG-TSXV, AAGFF-OTCQB, FLM1-FRA] said it intends to complete a non-brokered private placement of up to 22.2 million units to be sold at 45 cents per unit for total gross proceeds of $10 million. As a result, the company said 2176423 Ontario Ltd., a numbered company controlled by financier Eric Sprott, will become the “control person” of the company.

A control person is defined by the TSX Venture Exchange as a person with a sufficient number of securities to affect control of a corporation or holds more than 20% of the outstanding voting shares. If a transaction results in the creation of a new control person, the TSX-V will require a company to obtain shareholder approval of the transaction on a disinterested basis.

Under the terms of the financing, each unit will consist of one common share and one half of one transferable common share purchase warrant. Each warrant is exercisable by the holder to acquire one additional common share for 36 months from the date of issuance at a price of 70 cents per warrant share.

Aftermath Silver shares advanced on the news, rising 3.6% or $0.02 to 57 cents. The shares are currently trading in a 52-week range of 56 cents and 16.5 cents.

2176423 Ontario Ltd intends to subscribe for the entire amount of the private placement. Shareholders of the company will be asked at a meeting to consider, and, if thought fit, to pass a resolution approving the creation of 2176423 Ontario Ltd as a new “control person.’’

Aftermath is expected to use the net proceeds to advance the Berenguela silver-copper-manganese project in Puno province, southern Peru.

Aftermath recently launched a targeted follow-up campaign of 4,000 metres of diamond drilling 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.