Silver Tiger Metals Inc. Announces $87 Million Bought Deal Financing and El Tigre Project Capital Cost Update

Silver Tiger Metals Inc. announced a bought deal financing of C$87 million, which could rise to C$100 million with the exercise of the full over-allotment option. The offering comprises 87 million units priced at C$1.00 per unit, with each unit containing one common share and one-half of one warrant. These warrants are exercisable into common shares at C$1.35 per share for a period of 24 months from closing.

The company also updated the capital expenditure estimate for the El Tigre Project's Stockwork Zone to approximately US$124 million, representing an increase of roughly US$37 million from prior estimates. Drivers for the cost escalation include approximately 10% industry-wide inflation, a US$25 million increase in earthworks scope following additional geotechnical drilling, and higher negotiated prices for major equipment. As of September 10, 2026, the company had committed approximately US$81 million and incurred approximately US$17 million toward the updated capital expenditure.

With the full over-allotment, the pro forma cash balance is projected at C$185 million. This leaves approximately C$35 million in excess cash after funding the remaining US$107 million capital expenditure requirement. Construction remains on schedule for commissioning and first pour in December 2027.

Silver Tiger Metals Inc. (SLVR) is issuing 87 million new shares at approximately a 15% discount to the recent trading price of C$1.17. This financing fully funds the remaining construction phase, effectively de-risking the project timeline and eliminating near-term refinancing pressure.

The company faces a capital expenditure overrun of approximately 42%, a figure that signals issues with initial cost forecasting and project execution discipline. Additionally, the warrant structure introduces a secondary layer of potential dilution, although the C$1.35 strike price is above the current market, limiting immediate exercise pressure.

Silver Tiger Metals Inc. (SLVR) is a 100% owned silver-gold exploration and development company focused on the El Tigre Project in Sonora, Mexico. The flagship project is a historic mining district covering over 37,000 hectares, with historical production of 353,000 ounces of gold and 67.4 million ounces of silver.

The company is advancing a heap leach mine and underground potential, with a target first pour of dore bars in December 2027. Recent technical reports include a Preliminary Economic Assessment (PEA) for the underground mine and an updated Pre-Feasibility Study (PFS) for the Stockwork Zone, highlighting robust economics at base-case metal prices. No corporate presentation or transcript was provided for this analysis.