Highlander Silver gets funding for new project bought from SSR Mining

South America-focused Highlander Silver (CSE: HSLV) is set to receive a financial boost after it negotiated a C$9.2 million investment from members of the Lundin family as well as Canadian mining billionaires Richard Warke and Eric Sprott.

On Tuesday, the precious metals junior announced the strategic financing from these three parties, consisting of approximately 20.5 million common shares priced at C$0.45 each. The Lundin family and Warke, through his Augusta Group, already held shares in Highlander.

The stock soared to a 52-week high of C$0.69 in the early hours of trading, and by 11:25 a.m. ET, it retreated slightly at C$0.68 apiece, still up 36% for the session. Its market capitalization was around C$40 million ($29m).

“We very much appreciate the continued support from Richard Warke and the Lundin family, and we are delighted to welcome Eric Sprott as a new strategic investor in Highlander,” Highlander CEO David Fincham said in a news release.

The financing follows a C$3 million investment from Augusta and the Lundin family in October 2023. At the time, Highlander offered units of the company at C$0.10 each, and subsequently consolidated its shares on a 2:1 basis.

That investment, which was Lundin’s first in Highlander, was used for the company’s La Estrella project in central Peru. The project has a near-surface exploration target hosting 15 to 35 million tonnes averaging between 50-60 g/t silver and 0.4-0.6 g/t gold, containing 25-60 million oz. of silver and 200,000-700,000 oz. of gold.

The new C$9.2 million investment will go towards the San Luis gold-silver project that Highlander recently acquired from SSR Mining for $42 million. This project, also in central Peru, has a historical measured and indicated mineral resource of 348,000 oz. of gold grading 22.4 g/t and 9 million oz. of silver grading 578.1 g/t.