Silver X raises C$69M in private placement

Silver X Mining (TSXV: AGX) has closed a convertible debenture financing of C$69 million to support its projects based in Peru.

Under a brokered private placement, the Canadian silver miner sold a total of 69,000 debentures priced at $1,000 each. It initially planned to raise $60 million, but due to high demand, the agent exercised its 15% overallotment exercise for an additional $9 million in proceeds, to be used for development capital costs. 

“[This] is an important step toward our ambition to become South America’s next premier silver company,” Silver X CEO José García said in a release this week. “This capital enables us to continue advancing the Nueva Recuperada Project across production expansion, development, and exploration, where we expect to deliver meaningful results in the months ahead.”

Shares of Silver X fell as much as 10% to 61¢ apiece on the financing close, in line with a broader market selloff in the metals sector. Its market capitalization is about C$175.8 million.

Path to 6M oz

The Vancouver-headquartered company holds a large land package (nearly 208 sq. km) in Peru known as the Nueva Recuperada district, containing two mining units – Tangana and the restart-ready Plata – as well as over 200 exploration targets.

Together, these two mining units are expected to provide a path towards 6 million oz. of silver-equivalent production a year, Silver X has said. This was confirmed in a preliminary economic assessment (PEA) last September, which envisioned a 3,000-tonne-per-day mine operating for at least 14 years.

The PEA was based on a resource estimate of 35.65 million oz. silver-equivalent measured and indicated and 116.55 million oz. inferred. To expand the resource, the company is currently in the process of completing a 40,000-metre campaign, representing its largest to date.

Silver X acquired the Nueva Recuperada property through the consolidation of various mining concessions held by Buenaventura (NYSE: BVN), Pan American Silver (TSX, NYSE: PAAS) and Peruvian Metals.

The project lies within a historic mining area dating back to the 16th century. The Nueva Recuperada plant operated for 60 years, accounting for about 200 million oz. of silver-equivalent production within a 30-km radius. The project was placed on care and maintenance in 2014. Silver X subsequently took over the project and brought it to commercial production in 2022.