Silver Tiger unveils $40 million bought deal financing

Silver Tiger Metals Inc. [SLVR-TSXV, SLVTF-OTCQX] has announced details of a $40 million bought deal financing and said it will use part of the proceeds for exploration and development of its El Tigre silver-gold project in Sonora, Mexico.

The company said the underwriters have agreed to purchase, on a bought deal basis, 54.8 million common shares for 73 cents per share. The company has also given the underwriters an option to purchase up to an additional 15% of the offering to cover over-allotments, if any. That option can be exercised at the offering price for 30 days after closing, which is scheduled to occur around November 26, 2025.

On Thursday, Silver Tiger shares eased 8.75% or $0.07 to 73 cents. The shares trade in a 52-week range of 92 cents and 20 cents.

The latest financing round comes just weeks after Silver Tiger closed a $28.8 million bought deal offering consisting of 39.9 million shares priced at 72 cents per share. Proceeds are also earmarked for exploration, and development expenditures at the 100%-owned El Tigre Stockwork Silver-Gold project, a key asset that covers 28,414-hectares.

The company said it has secured all of the required approvals and permits from the Mexican Federal Environmental Department to construct its El Tigre project. This marks the first full permit issued by Mexico since 2020.

A preliminary feasibility study (PFS) for the project was disclosed in a press release dated October 22, 2024.

The El Tigre district lies at the northern end of the Sierra Madre silver and gold belt, which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end. Gold was first discovered on the property in 1896 and mining activity dates back to 1903.

By the time the mine closed in 1930 following the onset of the Great Depression, it is reported to have produced 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tonnes. The average grade mined during that period was over 2.0 kilograms of silver equivalent (AgEq) per tonne.

In October, 2024, the company announced an updated mineral resource estimate, which includes an out-of-pit mineral resource that the company said it intended to evaluate in a preliminary economic assessment scheduled for the first half of 2025.

The PFS envisages an open pit project with an expected 10-year mine life, with a projected recovery of 43 million payable AgEq ounces or 510,000 payable gold equivalent ounces (AuEq), consisting of nine million silver ounces and 408,000 gold ounces. Average annual production is projected at approximately 4.8 million AgEq ounces of 56,700 AuEq ounces; and three years of production in the proven category in the Phase 1.0 starter pit.

The project is expected to deliver a life-of-mine undiscounted after-tax cash flow of US$318 million, with initial capital costs of US$86.8 million, including a US$9.3 million contingency.