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Highlights

  • Silver Mountain entered a bought deal to raise CAD 15,002,000 through unit issuance.
  • Each unit is priced at CAD 1.30 and includes one share and half a warrant.
  • Proceeds will fund the Reliquias mine, Caudalosa plant, and general working capital.

Silver Mountain Resources Inc. (TSXV:AGMR) has entered into a bought deal financing agreement with Velocity Capital Partners, acting on behalf of a syndicate of underwriters. Under the agreement, the underwriters will purchase 11,540,000 units of the company at CAD 1.30 per unit, for total gross proceeds of CAD 15,002,000.

Silver Mountain is a Canadian mining company focused on developing silver and polymetallic assets in Peru. Its flagship project, the Reliquias mine, is located in a well-established mining district supported by existing infrastructure and local partnerships. The company’s development strategy includes advancing both the Reliquias mine and the Caudalosa processing plant.

Each unit consists of one common share and one-half of a common share purchase warrant. Every full warrant will entitle the holder to acquire one common share at an exercise price of CAD 1.70. The warrants will remain exercisable for 24 months following the closing of the offering.

Silver Mountain has also granted the underwriters a 30-day over-allotment option to purchase up to an additional 1,730,000 units. If fully exercised, this would increase the total gross proceeds of the offer to CAD 17,251,000. The underwriters are under no obligation to exercise this option in whole or in part.

The offering will be conducted through a prospectus supplement to the company's short form base shelf prospectus dated October 28, 2024. The securities will be offered in all provinces and territories of Canada except Québec, and by private placement in the United States under applicable exemptions from registration. Additional placements may occur in other international jurisdictions, subject to agreement between Silver Mountain and the underwriters.

Proceeds from the offering are earmarked for the development of Silver Mountain's Reliquias mine, the Caudalosa processing plant and associated infrastructure. The remaining funds will be used for general corporate purposes and working capital.

The transaction is expected to close on or around July 29, 2025, pending customary closing conditions and approval from the TSX Venture Exchange.