Andean Silver Limited (ASX: ASL), an Australian mineral exploration and development company focused on its Cerro Bayo Silver-Gold Project in Chile, has announced it received firm commitments to raise A$30 million through a placement to institutional and sophisticated investors. The placement, priced at A$1.20 per share, represents a 13.4% discount to the last sale price. Canaccord Genuity, Euroz Hartleys and SCP Resource Finance acted as Joint Lead Managers to the Placement.
The funds raised will enable Andean to capitalise on the current re-rating in the silver sector by targeting resource growth, infill drilling campaigns, and advancing mining studies. Specifically, the proceeds will be used for ongoing drilling to expand resources, converting Inferred Resources into Measured and Indicated categories, delivering mining, metallurgical, and geotechnical studies, and commencing feasibility studies. The company anticipates this will significantly enhance the project’s value and demonstrate its production potential.
Andean Silver Chief Executive Tim Laneyrie stated that the company has established a pipeline of outstanding value-creating opportunities and now has the funds to pursue them rapidly. He highlighted the exceptional scope for resource growth through brownfields and greenfields exploration, as well as the opportunity to upgrade Inferred Resources to Measured and Indicated categories, which typically attract higher valuations.
Upon completion of the Placement, Andean Silver will have a pro-forma cash balance of approximately A$42.2 million. The company intends to use these funds to advance the Cerro Bayo project and grow its existing silver-gold resources, aiming to establish a globally significant asset.
