Silver Storm raising up to $3.5 million from upsized financing
Silver Storm Mining Ltd. [SVRS-TSXV, SVRSF-OTCQB, SVR-FSE] said it is upsizing a private placement financing that is now expected to generate up to $3.5 million from an offering of units priced at $0.09 each.  That’s ahead of an earlier $2.0 million target.
The non-brokered private placement financing will include $1.5 million from significant shareholder First Majestic Silver Corp. [AG-TSX, AG-NYSE, FMV-Frankfurt].
So far, under the terms of the offering, the company has raised gross proceeds of $1.29 million. Under the terms of the offering, each unit consists of one common share purchase warrant. Each warrant is exercisable to acquire one additional common share at an exercise price of 16 cents until 36 months from the date of issuance. First Majestic has committed to subscribe for 16.7 million units for an aggregate purchase price of $1.5 million.
About a year ago, Silver Storm completed the acquisition of a 100% interest in the La Parrilla Silver Mine Complex, a prolific operation which consists of a 2,000 tonne-per-day mill as well as five underground mines and an open pit that collectively produced 34.2 million silver equivalent ounces between 2005 and 2019.
When placed on care and maintenance in September, 2019, La Parrilla was a fully-permitted mine complex.
Silver Storm acquired the asset from First Majestic Silver Corp., a company that currently ranks as Silver Storm’s largest shareholder. Silver Storm’s other key shareholders include financier Eric Sprott, who currently owns a 10.5% stake in the company on a non-diluted basis.
The property was acquired by First Majestic in 2004 and became its first silver mine in 2005.
Silver Storm has previously said its short-term objective is to commence exploration within and near-mine workings in order to expand the resource base, to support our ultimate goal and vision of placing the asset back into production.
The company said net proceeds from the latest offering will be used to complete its upcoming National Instrument 43-101 compliant resource statement, and for general corporate and working capital purposes.
The company recently released drill results from its Phase 2.0 diamond drilling program. It said results from 10 holes (1,406 metres) are from the C460 Zone, within the Quebradillas mine. Numerous high-grade intercepts were encountered in the C460 Zone. Current drill results, when combined with historical holes drilled by First Majestic are expected to have a positive impact on future mineral resources.
Silver Storm also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico.
On Friday, the shares rose 11.1% or $0.01 to 10 cents. The shares are currently trading in a 52-week range of 19.5 cents and $0.07.