AbraSilver Resource has announced plans to raise approximately C$48.4m ($33.2m) to advance its Diablillos silver-gold project in the Salta province of Argentina.
The funding will be raised through a combination of a public offering and a concurrent private placement.
The public offering, underwritten by National Bank Financial and Beacon Securities, involves the sale of 8,550,000 common shares at C$2.55 each, totalling C$21.8m.
The underwriters have an option to purchase an additional 15% of common shares, exercisable within 30 days post-closing.
Simultaneously, the company is planning for a private placement of up to 10,434,062 common shares at the same issue price to raise C$26.6m.
Argentina’s electricity provider, Central Puerto, and mining company Kinross Gold have agreed to participate in the placement and are engaging their anti-dilution rights as existing shareholders.
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By GlobalDataCentral Puerto’s share purchase is expected to increase its ownership to roughly 9.9%. Kinross intends to maintain its current ownership level.
Both offerings are subject to a four-month hold period and regulatory approvals, including from the TSX Venture Exchange.
Central Puerto and Kinross Gold initially invested a combined C$20m in AbraSilver last April, each securing a 4% equity stake.
The net proceeds from the offering will support the Diablillos project’s progression and general corporate purposes.
The offering’s closing is expected around 6 February 2025, contingent on necessary approvals.
The Diablillos property, spanning 79km², contains reserves totalling 123.48 million ounces (moz) of silver and 1.11moz of gold.
The technical report suggests the open-pit mine could produce 7.6moz of silver and 72,000oz of gold per annum over a 14-year lifespan.
The Diablillos project’s valuation increased following an updated prefeasibility study, which estimated an after-tax net present value (5%) of $747m.
The project’s capital costs have risen by 45% to $544m, attributed to inflation, exchange rates, labour costs and additional waste stripping expenses.
A definitive feasibility study is expected in the first half of 2026.
