Silver Mines Limited (ASX:SVL), an Australian precious metals exploration and development company primarily focused on its silver projects, particularly the Bowdens Silver Project in New South Wales, has announced a significant capital raising initiative. The company intends to secure approximately A$70 million (before costs) through a two-tranche placement to existing and new investors. The offer price for the new shares has been set at A$0.145 per share, representing a 10.0% discount to the five-trading day volume-weighted average trading price as of 18 September 2026.
The proceeds from the placement, after costs, are earmarked for several strategic objectives. A substantial portion will be directed towards advancing the Bowdens Silver Project, specifically for development consent approvals and engineering studies. Funds will also facilitate cash consideration for the acquisition of the Fitzroy Royalty and Asia Metals Royalty, alongside ongoing community and freehold purchases, including property acquisitions and land access agreements. Furthermore, the capital will support continued exploration efforts to grow mineral resources at its Kramer Hills and Calico North projects in the United States, as well as its New South Wales projects, including the Tuena Project, and general working capital.
Managing Director Mr. Jo Battershill commented on the placement, stating, “We are pleased to launch this Placement as we continue to advance the Bowdens Silver Project towards development. Bowdens remains our primary focus, and we are continuing to build momentum across the development consent process.” The placement will involve the issue of 482,758,621 fully paid ordinary shares. Tranche 1, comprising 277,733,713 shares, will be issued unconditionally, with settlement expected by 28 September 2026. The remaining 205,024,908 shares in Tranche 2, along with any Director Placement Shares, will be subject to shareholder approval at the Company’s Annual General Meeting, anticipated on 26 November 2026. Petra Capital is acting as Sole Lead Manager and Sole Bookrunner, with Morgans Corporate Limited as Co-Manager.
