AbraSilver Resource has secured $48.4m ($32.96m) in financing to support the development of its fully owned Diablillos silver-gold project in Argentina’s Salta province.
The funding includes a C$21.8m ($14.85m) bought deal offering and a concurrent private placement of up to C$26.6m ($18.12m).
Under the bought deal agreement, National Bank Financial and Beacon Securities, acting as co-bookrunners, will purchase 8.5 million common shares at C$2.55 per share.
The underwriters also have an option to acquire up to an additional 15% of the shares issued, exercisable within 30 days of closing.
Subject to regulatory approvals, including conditional approval from the TSX Venture Exchange, the transaction is expected to be closed on or around 6 February 2025.
In addition, AbraSilver has entered into a binding subscription agreement with an affiliate of Central Puerto, which will purchase 9.7 million shares as part of the private placement, increasing its stake to approximately 9.9%.
Kinross Gold is also expected to participate to maintain its current ownership position.
AbraSilver CEO and president John Miniotis said: “The strong support from both institutional investors and strategic partners reinforces confidence in our vision and the long-term value of our assets.
“With this financing, we are extremely well-positioned to achieve all key development milestones and create significant value for all our shareholders.”
According to a pre-feasibility study completed in December 2024, the Diablillos project requires an initial pre-production capital expenditure of $544m, with an additional $77m in sustaining capital over its life of mine (LOM).
The project has an estimated after-tax net present value (NPV) of $747m, with an internal rate of return (IRR) of 27.6% and a projected payback period of two years.
Over a 14-year mine life, Diablillos is expected to produce an average of 13.4 million ounces of silver-equivalent annually, including 7.6 million ounces of silver and 72,000 ounces of gold.
Production is expected to be higher in the initial five years, averaging 16.4 million ounces of silver-equivalent annually, comprising 11.7 million ounces of silver and 59,000 ounces of gold.
