IMPACT Silver secures C$8 million financing for Mexican mining operations

Published 02/09/2025, 23:42
IMPACT Silver secures C$8 million financing for Mexican mining operations

VANCOUVER - IMPACT Silver Corp. (TSXV:IPT), a mining company with a market capitalization of $76.5 million, announced Tuesday it has entered into an agreement with Red Cloud Securities Inc. and Research Capital Corporation for an C$8 million underwritten offering, with an option to increase proceeds by an additional C$2 million. According to InvestingPro data, the company’s stock has shown remarkable strength, delivering over 125% returns in the past six months.

The offering consists of 22,222,222 units priced at C$0.36 each, with each unit comprising one common share and one warrant exercisable at C$0.45 for a 24-month period. The underwriters have been granted an over-allotment option to purchase up to an additional 5,555,556 units.

IMPACT plans to use the proceeds to advance underground development at its Guadalupe mine and increase processing capacity at its wholly-owned Guadalupe Production Centre in Mexico. Funds will also support expansion of operations and accelerate resource definition drilling at the company’s Plomosas zinc-silver-lead mine in Chihuahua, with remaining proceeds allocated to working capital. The company maintains a strong financial position with more cash than debt on its balance sheet and a healthy current ratio of 4.62, indicating robust liquidity to support its expansion plans. InvestingPro analysis reveals significant revenue growth of 69.4% in the last twelve months.

The offering is expected to close on September 17, 2025, subject to regulatory approvals including from the TSX Venture Exchange.

Units will be offered to purchasers in Canadian provinces except Quebec under the listed issuer financing exemption, making the underlying shares immediately freely tradeable under Canadian securities legislation. The offering may also extend to offshore jurisdictions and the United States via private placement exemptions.

IMPACT Silver operates two mining projects in Mexico: the Royal Mines of Zacualpan Silver-Gold District, where four underground mines and one open pit mine supply a 500 tpd processing plant, and the Plomosas Zinc-Lead-Silver District, where the company recently restarted mining operations. For deeper insights into IMPACT Silver’s financial health and growth potential, InvestingPro subscribers have access to over 10 additional ProTips and comprehensive financial metrics.

The information in this article is based on a company press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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