Silver Bullet announces strategic financing
Silver Bullet Mines Corp. [SBMI-TSXV, SBMCF-OTCQB] has arranged a strategic private placement of up to $1.5 million, with a lead order of $500,000. It said the private placement will consist of up to 12.5 million units at 12 cents each, with each unit consisting of one common share purchase warrant entitling the holder to purchase a warrant exercisable at 16 cents for 36 months from the issue date.
The company said proceeds will be used to finance an accelerated development program at the Washington mine property in Idaho, and a detailed exploration program at the Super Champ mine, where it recently encountered a historical mining tunnel, shaft and waste piles. It said the discovery further validates its thesis for high-grade silver and possibly gold production from Super Champ.
Silver Bullet shares were unchanged at 12 cents and currently trade in a 52-week range of 17 cents and $0.07.
Silver Bullet recently said mining for silver was set to commence at its Washington Silver Mine in the early fall of 2024 and is expected to continue through the winter of 2024/2025.
The initial plan is for a contractor to extract roughly 2,500 tons of silver mineralized material. Management reasonably expects that material to have gold credits in it as well. The targeted zone is the zone from which a bulk sample was taken by a third party in the 1980s and returned values of 44 ounces per ton silver and 1.0 ounce per ton gold.
The extracted material will be stockpiled at the Washington mine site until sufficient quantities have been extracted for economic shipping and processing at a third-party mill.
The Washington mine, a historical past producing high grade gold/silver mine, is 100% privately owned by Silver Bullet and located on patented lands. It is near Idaho City, and Boise, proximate to infrastructure.
The Washington Mine saw first production in the late 1800s with an average gold grade of one ounce per ton. It again produced gold in the 1930s. But at that time, the owner lacked the process capability needed to produce silver.
Silver Bullet recently said it had agreed to process high grade mineralized material from a past producing silver mine located near the company’s Buckeye Silver Mine in Arizona on commercial terms. “The private property is owned by an arms-length third party,’’ the company said in a press release.
The company said it has begun processing the material into saleable product, whether by way of concentrate or dore bar, thereby generating revenue.
“Historical reports indicate material from the past producing silver mine was direct shipped to a smelter and was not milled on site,’’ the company said, adding that its due diligence review of the property has confirmed significant high grade silver mineralization and has confirmed a high-grade silver vein at surface.
Silver Bullet’s due diligence review included a sampling program and test runs of the material at Silver Bullet’s 100%-owned mill and assay facility in Globe, Arizona.