Silver47 Exploration (TSX.V: AGA, FSE: QPE, WKN: A408EQ) has issued new shares with a total volume of $23 million as part of a brokered LIFE financing for the further development of its U.S. silver properties in Alaska, Nevada, and New Mexico. Investor demand for the new shares was so strong that the over-allotment option provided was also exercised in full.
The shares were issued at a price of CAD 0.70 per unit. Silver47 Exploration will receive gross proceeds of CAD 23,000,460 from the issuance of the shares, including the over-allotment option. As is customary in Canada, in addition to the company’s new common shares, warrants were also issued, entitling the holder to purchase one additional common share of Silver47 Exploration.
Each unit contained half an option. The options expire on September 16, 2028, and until that date, a full option can be exchanged for another common share of Silver47 Exploration at an issue price of CAD 1.00.
Silver47 Exploration will use most of the funds raised to further develop its three promising silver projects in the US. These currently have a combined resource of 236 million ounces of silver equivalent in the inferred category and a further 10 million ounces in the indicated category. The average silver equivalent grade per tonne in the inferred resource is a high 334 grams, while in the indicated category it is only slightly lower at 333 g/t.
Director of Silver47 Exploration Acquires CAD 70,000 in Units
Silver47 Exploration is not only represented in the most productive mining areas of the United States with high-grade projects but also has an impressive defined resource that is set to be further expanded and upgraded in the coming months.
Thanks to the successful private placement, the capital required for these exploration steps is now readily available, and Silver47 can focus its attention in the coming weeks on the precise planning of the individual measures planned for the three projects.
For the company’s existing and new shareholders, it is not only reassuring to know that the upcoming activities are financially well secured. Another sign from senior management associated with this placement is also important: a senior director of the company subscribed for CAD 70,000 worth of shares in the company.
In our opinion, this sum is too large for a token investment. It can therefore rightly be seen as a financial expression of the conviction that Silver47 Exploration has excellent projects on the one hand and is – hopefully – capable of developing them successfully on the other.
