Silver Storm Mining closes C$13.8 million bought deal private placement

TORONTO - Silver Storm Mining Ltd. (TSX.V:SVRS | FSE:SVR), whose stock has surged 51.52% year-to-date according to InvestingPro data, announced Monday the closing of its bought deal private placement, raising gross proceeds of C$13,766,250, which includes partial exercise of the underwriter’s over-allotment option.

The company sold 55,065,000 units at C$0.25 per unit, with Red Cloud Securities Inc. acting as sole underwriter and bookrunner. Each unit consists of one common share and one-half of a common share purchase warrant, with each whole warrant exercisable at C$0.35 until September 22, 2028.

Silver Storm intends to use the net proceeds to advance the restart of its La Parrilla Silver Mine Complex in Durango, Mexico, as well as for general corporate purposes and working capital. The financing comes at a crucial time, as InvestingPro analysis indicates a weak financial health score of 1.27, suggesting the company could benefit from the capital injection.

Of the total offering, 51,200,000 units were sold to Canadian purchasers under the listed issuer financing exemption, with the remaining 3,865,000 units sold through various exemptions to purchasers in Canada, the United States, and other jurisdictions.

The underwriter received cash fees of C$824,475 and 3,297,900 non-transferable common share purchase warrants, exercisable at the offering price until September 22, 2028.

The offering remains subject to final approval from the TSX Venture Exchange.

Silver Storm Mining acquired 100% of the La Parrilla Silver Mine Complex in 2023. The operation includes a 2,000 tpd mill, five underground mines, and an open pit that collectively produced 34.3 million silver-equivalent ounces between 2005 and 2019. Trading at $0.12, the stock currently sits 62% below its 52-week high of $0.19, though it has recovered significantly from its low of $0.05, according to InvestingPro data.

This article is based on a company press release statement.

In other recent news, Silver Storm Mining Ltd. has announced a C$13 million bought deal financing agreement with Red Cloud Securities. The agreement includes the option to increase proceeds by an additional C$2 million. Red Cloud will purchase 52 million units at C$0.25 per unit, with each unit comprising one common share and one-half of a common share purchase warrant. Additionally, each whole warrant allows the holder to purchase an extra common share at C$0.35 for up to 36 months after closing. In another development, Silver Storm Mining’s acquisition of Till Capital Corporation has received shareholder approval. This acquisition will result in Silver Storm indirectly acquiring all issued and outstanding common shares of Till Capital. The transaction will proceed through a court-approved plan of arrangement. These recent developments highlight significant steps for Silver Storm Mining Ltd.

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