VANCOUVER – Silver Tiger Metals Inc. [SLVR-TSXV, SLVTF-OTCQX] has arranged an $18 million bought deal financing with proceeds earmarked for its El Tigre project in Sonora, Mexico.
The company said a syndicate of underwriters have agreed to buy 58.1 million Silver Tiger shares, priced at 31 cents each on a bought deal basis. The underwriters have been granted a green shoe option to purchase up to an additional 15% of the offering to cover overallotments, if any. That option will remain open for 30 days after the closing of the financing, likely on February 24, 2023.
Details of the bought deal financing were announced after the close of trading on February 7, 2023, when Silver Tiger shares closed at 34.5 cents. The shares are currently trading in a 52-week range of 73 cents and 18 cents.
The company’s key asset is a 100% stake in 28,414-hectare El Tigre mining district in Sonora.
The El Tigre district lies at the northern end of the Sierra Madre silver and gold belt, which hosts many epithermal silver and gold deposits, including Dolores, Santa Elena and Las Chispas at the northern end. Gold was first discovered on the property in 1896 and mining activity dates back to 1903.
By the time the mine closed in 1930 following the onset of the Great Depression, it is reported to have produced 353,000 ounces of gold and 67.4 million ounces of silver from 1.87 million tonnes. The average grade mined during that period was over 2.0 kilograms of silver equivalent (AgEq) per tonne.
After acquiring El Tigre, Silver Tiger drilled 12,500 metres to define the wide halo of near surface gold mineralization around the mined high-grade veins of the historic El Tigre Mine. This enabled the company to deliver a maiden resource estimate for the property to a depth of 150 metres of 661,000 gold equivalent (AuEq) ounces at 0.77 g/t in the indicated category and an inferred resource of 341,000 AuEq ounces at 1.59 g/t. The estimate is compliant with NI 43-101 standards are disclosure.
The company said it is currently drilling the Sooy, Benjamin, Seitz Kelly and El Tigre high grade quartz silver veins and emerging high grade shale horizon that surrounds these veins.
Silver Tiger has also been working on underground rehabilitation of the El Tigre mine. The company said underground rehabilitation is being conducted on the Level 7 main portal to access the historic workings on the Sooy, El Tigre and Seitz Kelly veins. This work aims to allow Silver Tiger to begin drilling from underground drill stations.
The company said recent drilling has identified a high grade sulphide zone, which ranks as the fourth type of mineralization found at El Tigre. It said the first holes through this wide high grade sulphide zone have delineated a strike length in excess of 150 metres open to the north and south, with widths approaching 35 metres.