Due to years of neglect, many commodity markets are currently facing a supply deficit. Farsighted investors are keen to capitalize on these bottlenecks and are positioning themselves early. Silver and copper are particularly in focus. They are indispensable for the energy transition and offer attractive opportunities for both the companies exploring for them and for investors. Prismo Metals (CSE: PRIZ, OTCQB: PMOMF) is one such company, as the young explorer is developing three silver projects and one copper property in Mexico and the US state of Arizona. A recent placement of new shares conducted to finance this work was oversubscribed, demonstrating strong investor interest in the company and its projects.
The capital increase was conducted between July 3 and 18, 2025. Initially, Prismo Metals had planned to issue six million units at a price of 0.06 Canadian Dollars (CAD). Due to strong demand and the oversubscription of the capital increase, the company decided on short notice to issue 6,425,000 units. This resulted in gross proceeds of 385,500 CAD. Together with the new shares already issued in advance, Prismo Metals achieved total gross proceeds of 1,077,500 CAD from both subscription rounds.
As is customary in Canada, each unit consists of one common share of the company and one-half warrant. Each full warrant entitles the holder to purchase an additional Prismo Metals common share at an exercise price of 0.10 CAD within the next 24 months.
Prismo Metals Converts Debt into Equity
The number of outstanding Prismo Metals shares increased in July not only due to the two tranches of the recent capital raise. An additional 1,375,000 common shares of the company were also issued to the lender at a price of US$0.06 per share as full and final settlement for the repayment of an existing US$60,000 loan. The fact that this creditor chose to accept shares instead of a cash payment also demonstrates the significant potential of the stock.
The move is not unexpected, as this creditor is one of the original optionors of the Palos Verdes silver project in Mexico. He knows the project very well and understands its value. Therefore, it made sense for him to prefer a settlement of the last outstanding payment in shares over a cash payment, thereby indirectly remaining involved in the Palos Verdes project through Prismo Metals.
Prismo Metals intends to use the gross proceeds from the private placement for the exploration of the Silver King project, as well as for working capital and general corporate purposes.
Alain Lambert, CEO of Prismo Metals, expressed great satisfaction with the outcome of the capital increase. The oversubscription of the placement reflects strong investor interest in the company and its projects. At the same time, Prismo Metals has developed a comprehensive exploration plan for the Silver King project. It envisages extensive work and drilling totaling at least 1,000 meters in the first year of exploration.
