Silver Mountain completes $26.4 million IPO

Silver Mountain completes $26.4 million IPO
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TORONTO – Silver Mountain Resources Inc. [AMGR-TSXV] shares began trading Wednesday after the company closed a previously announced initial public offering that raised $23 million from the sale of 46 million units of the company priced at 50 cents each.

The company has also issued an additional 6.9 million units at the offering price, generating additional proceeds of $3.45 million in connection with the exercise of the over-allotment option.

Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder to acquire one common share at an exercise price of 70 cents for two years after the offering closes.

The offering was made through a syndicate of underwriters co-led by Eight Capital and Sprott Capital Partners LP as well as Research Capital Corp.

After opening at 46 cents on Wednesday, the share price later dipped to 42 cents on volume of 612,500.

Silver Mountain is a silver explorer and mine development company. Its immediate goal is to re-commence production at the Reliquias underground mine and undertake exploration activities at its prospective silver camps at the Castrovirrena Project in Huancavelica, Peru.

Silver Mountain was incorporated in January 2021 as Roxy Mining Corp. but later changed its name to Silver Mountain. Its principal asset is a 99.99% interest Sociedad Minera Reliquias S.A.C. (SMR) owner of 100% of the concessions and holder of more than 27,000 hectares in the district of Castrovirreyna.

The management team is led by President and CEO Alfredo Bazo, a civil engineer with a strong record in project management, the company said.

The Castrovirreyna Project includes a fully developed underground mine, a 2,000 tonne-per-day concentrator plant and a tailings dam with 2.0 years of capacity at full operation. The company expects to re-commence production at the Castrovirreyna Project in the second quarter of 2023.

In addition to the underground mine at the Castrovirreyna Project, SMR owns other brownfield and greenfield projects, such as the Dorita and Huancarpusca zones that show high-sulfidation epithermal targets with silver, gold and polymetallic concentrations in silicified-oxidized structures.

The company believes that these zones have potential for conventional low-cost open pit heap leach mining and low stripping.

The Castrovirreyna Project can be accessed from Lima, Peru by driving south on the Panamerican Highway for 230 kilometres to the town of San Clemente, then turning inland and gaining access through the town of Castrovirreyna, the capital of the province of Castrovirreyna Project.

Under the terms of an offtake agreement, SMR will sell to Trafigura Peru, 100% of the production of zinc, lead, copper, silver concentrates and other quantities produced at the Reliquias mine and treated at the Jose Picasso Perata processing plant. The offtake agreement is based on a treatment capacity of 2,000 tonnes per day of silver ore or 1,600 tonnes per day of polymetallic ores.

Trafigura has a right of first refusal on 100% of any excess capacity.

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