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 (TSX: SIL) has announced a non‑brokered private placement of 10 million common shares at C$7.50 per share for gross proceeds of C$75 million (about $54 million).
The company also reserves the right to increase the private placement to up to 13.33 million shares at the offering price to raise a total of up to C$100 million.
SilverCrest said it intends to use the financing proceeds for the continued exploration and development of its Las Chispas silver-gold project in Sonora, Mexico
SilverCrest said it intends to use the financing proceeds for the continued exploration and development of its Las Chispas silver-gold project in Sonora, Mexico, as well as for general working capital and administrative purposes.
Pursuant to a prior agreement between the company and SSR Mining, the latter has a right to maintain its pro rata ownership interest of up to 9.9% of SilverCrest’s outstanding shares. SSR must exercise such right within two business days from the date that SilverCrest provides notice of the offering.
The private placement is expected to close on April 17.
Shares of SilverCrest were up by more than 5% by midday Monday. The Vancouver-based precious metals miner has a market capitalization of C$891.2 million.
