Business
Abrasilver Resource Announces Closing of $30 Million Public Offering of Common Shares
TORONTO, Feb. 7, 2025 /CNW/ - AbraSilver Resource Corp. (TSXV: ABRA) ("AbraSilver" or the "Company") is pleased to announce the successful closing of its previo
About this update from Abrasilver Resource Corp.
[{"type":"text","content":" TORONTO, Feb. 7, 2025 /CNW/ - AbraSilver Resource Corp. (TSXV: ABRA) (\"AbraSilver\" or the \"Company\") is pleased to announce the successful closing of its previously announced bought deal public offering (the \"Offering\") of 11,765,650 common shares of the Company (the \"Common Shares\") at a price of $2.55 per Common Share (the \"Issue Price\") for aggregate gross proceeds of $30,002,407.50. This total includes the full exercise of the over-allotment option. The Offering was completed pursuant to an underwriting agreement dated February 4, 2025 (the \"Underwriting Agreement\") entered into among the Company and a syndicate of underwriters, led by National Bank Financial Inc. and Beacon Securities Limited, acting as co-bookrunners, and including Raymond James Ltd., Scotia Capital Inc. and TD Securities Inc. (collectively, the \"Underwriters\"). In connection with the Offering, the Company paid the Underwriters a cash commission equal to 6.0% of the aggregate gross proceeds raised. Net proceeds from the Offering will be used to fund the continued advancement of the 100%-owned Diablillos silver-gold project in the Salta province of Argentina, as well as for general corporate purposes. In addition to and concurrent with the Offering, the Company intends to complete its previously announced private placement (the \"Concurrent Private Placement\") of up to 11,193,565 Common Shares in connection with the exercise of participation rights held by an affiliate of Central Puerto S.A. (\"Central Puerto\") and Kinross Gold Corporation (\"Kinross\"), at the Issue Price, for aggregate gross proceeds of up to $28,543,590.75. In connection with the Concurrent Private Placement, the Company may pay an arm's length finder a cash commission of up to 3.0% of the proceeds raised from Central Puerto. The Common Shares sold pursuant to the Concurrent Private Placement will be subject to a hold period of four months plus one day from the closing date of the Concurrent Private Placement. The closing of the Concurrent Private Placement is expected to occur on or about February 11, 2025 and is subject to the Company receiving all necessary approvals, including the conditional approval from the TSX Venture Exchange. The Offering was completed in all provinces and territories of Canada, except Quebec and Nunavut, pursuant to a prospectus supplemen...