Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
SilverCrest Metals (TSE: SIL) announced Wednesday that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial, Eight Capital and Scotia Capital, where the underwriters have agreed to purchase on a bought deal basis 9.1 million common shares of the company at C$8.25 per share for gross proceeds of C$75 million (approximately $54 million).
In January, SSR Mining elected to exercise its equity participation right to purchase on a private placement basis 1.82 million common shares of SilverCrest at a price of C$7.28 per share for total consideration of C$13.2 million.
SilverCrest intends to use the net proceeds of Wednesday’s deal for continued exploration and development of the Las Chispas project in Mexico and for general working capital.
The offer is expected to close around April 3, 2020 and is subject to regulatory approvals and approval of the TSE and NYSE.
On Wednesday afternoon, SilverCrest’s stock was down over 11% on the TSE. The day’s trading volume reached 1.3 million, over three times the daily average. The Vancouver-based precious metals miner has a C$830 million market capitalization.
