AbraSilver Resource Corp (TSXV: ABRA) is turning to the markets to raise further capital, announcing this morning a large $48.4 million financing that is set to occur in two parts.
The first part of the financing package will see National Bank and Beacon Securities lead a bought deal financing of $21.8 million, under which shares are priced at $2.55 per each with no warrant offered. A total of 8.55 million shares are to be sold under the offering, with an over-allotment option also in play that could increase the total shares sold by 15%.
The second part of the package is to consist of a private placement offering, which will see 10.4 million shares sold for proceeds of $26.6 million. The private placement will see Central Puerto SA increase its interest in AbraSilver to 9.9% via the purchase of 9.7 million common shares, while Kinross Gold has indicated it will participate in an effort to maintain its ownership stake in the company.
Proceeds from the financing are to be used to fund the advancement of the Diablillos silver-gold project in Argentina, as well as for general corporate purposes.
“We are truly delighted to announce this $48.4 million financing, providing us with immense financial flexibility to accelerate the development of our Diablillos project and continue unlocking its full potential. The strong support from both institutional investors and strategic partners reinforces confidence in our vision and the long-term value of our assets. With this financing, we are extremely well-positioned to achieve all key development milestones and create significant value for all our shareholders,” comment John Miniotis, CEO of AbraSilver.
AbraSilver last traded at $2.75 on the TSX Venture.
Information for this briefing was found via Sedar and AbraSilver Resource Corp. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
