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(Wallace Refiners) – SilverCrest (TSX: SIL) (NYSE American: SILV) announced yesterday that it has entered into an agreement with a syndicate of underwriters, pursuant to which underwriters have agreed to purchase, on a bought-deal basis, 13,050,000 common shares of the company at a price of US$9.20 per share for aggregate gross proceeds to the company of US$120 million.
The company said that the principal objectives for use of the net proceeds of the offering are to expand the Las Chispas project resources and reserves through further drilling, to optimize the mine and processing plant design, to explore regional targets, and for general working capital purposes.
The Las Chispas gold and silver project is located approximately 180 kilometres northeast of Hermosillo, Sonora, Mexico. The Las Chispas feasibility study yields an after-tax NPV(5%) of US$486M, undiscounted LOM free cash flow of $656M and IRR of 52 %. The payback period is expected to be 12 months.
SilverCrest is a Canadian precious metals exploration and development company headquartered in Vancouver, BC, that is focused on new discoveries, value-added acquisitions and targeting production in Mexico’s historic precious metal districts. The company’s current focus is on the high-grade, historic Las Chispas mining district in Sonora, Mexico.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Wallace Precious Metals The author has made every effort to ensure accuracy of information provided; however, neither Wallace Precious Metals nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Wallace Precious Metals and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
