SVL secures A$30.2 million convertible debenture funding for Bowdens Silver Project, NSW
Project Name: Bowdens Silver Project
Project Location: NSW
Project Stage: Advanced Exploration
ProjectBank Summary:
Silver Mines Limited (ASX: SVL) announces it has entered into a binding interim convertible debenture agreement with Bromma Asset Management Inc., Rick Rule, and MMCAP International Inc., securing A$30.2 million in funding before costs. This convertible debenture is less dilutive compared to traditional placements, with a conversion price set at a significant premium to the last trading price. The funds will be used for drilling, engineering studies for the Definitive Feasibility Study (DFS), pre-construction activities, and general administrative costs for the Bowdens Silver Project. The financial support underscores the strong potential of the project and the confidence in the Silver Mines team.
Silver Mines Highlights:
A$30.2 million funding secured through a binding interim convertible debenture agreement.
Convertible debenture less dilutive with conversion price set at a 33% premium to last trading price.
Funding to support drilling, engineering studies for DFS, pre-construction activities, and general administrative costs.
Advisory support provided by SCP Resource Finance.
Bromma Asset Management Inc., Rick Rule, and MMCAP International Inc. are specialized investors focused on the resource sector.
MD/CEO Statement:
Jo Battershill, Managing Director, commented: "We are thrilled to announce the A$30.2 million convertible debenture with Bromma Asset Management Inc. This funding is a significant milestone for Silver Mines as we continue to advance our Bowdens Silver Project. The financial support underscores the strong potential of our project and the confidence in our team. This convertible debenture is particularly advantageous for our shareholders as it is less dilutive compared to a traditional placement. The conversion price is set at a significant premium to the last trading price, which reflects the value and future potential of our project. This structure allows us to secure necessary funding while minimizing dilution and preserving shareholder value. We look forward to leveraging this investment to accelerate our development and exploration activities and bring the Bowdens Silver Project to fruition, ultimately delivering significant value to our shareholders."
