Silver Tiger arranges $40-million financing
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On November 12, 2025, Silver Tiger Metals announced it has entered into an agreement for a "bought deal" public offering to raise gross proceeds of C$40 million. The financing consists of 54.8 million common shares at a price of C$0.73 per share. The stated use of proceeds is for exploration and development of the company's El Tigre project in Mexico, as well as for general corporate purposes.
This financing is a material and positive development for Silver Tiger Metals. The timing is logical and strategic, coming just five days after the company announced it had received all required approvals and permits to construct the El Tigre mine.
The October 2024 Pre-Feasibility Study (PFS) for the open-pit portion of El Tigre outlined initial capital costs of US$86.8 million. This C$40 million financing, combined with the C$28.77 million raised in October 2025 and existing cash, represents a substantial portion of the required initial capital. It significantly de-risks the path to a construction decision and full project financing. By securing these funds, the company strengthens its negotiating position for the remaining capital, which is expected to be sourced from debt markets.
From a critical perspective, the financing is dilutive. The offering of 54.8 million new shares will increase the total shares outstanding by approximately 12.1% (based on the pro-forma count after the October financing). Bought deal financings are also typically done at a discount to the market price; the C$0.73 price represents a 12% discount to the previous day's close of C$0.83 and a 20.6% discount to the 52-week high of C$0.92 reached after the permitting news.
However, for a development-stage company, securing capital to build its primary asset is the most critical task. The dilution is a necessary trade-off to advance the project towards production. The offering price of C$0.73 is consistent with the C$0.72 price of the October financing and is a significant premium to the C$0.33 financing completed in April 2025, reflecting the substantial progress and de-risking achieved throughout the year.
Overall, this news confirms the market's confidence in the El Tigre project and management's ability to fund it. It provides the financial certainty needed to advance towards construction, making it a material positive catalyst.
Silver Tiger Metals Inc. is a Canadian precious metals exploration and development company. Its flagship asset is the 100%-owned El Tigre Project, a historic high-grade silver and gold district located in Sonora, Mexico.
The project is being advanced on two fronts: 1. Open-Pit Project: The company has completed a robust Pre-Feasibility Study (PFS) on the near-surface, lower-grade "Stockwork Zone." The PFS, updated in October 2024, outlines a 10-year mine life with an after-tax NPV (5%) of US$222 million and an IRR of 40%. Initial CAPEX is estimated at US$86.8 million. As of November 7, 2025, this project is fully permitted for construction. 2. Underground Project: The property also hosts high-grade epithermal veins, a sulfide zone, and a shale zone which were the focus of historic mining. The company is currently drilling these targets from a rehabilitated underground haulage way and is working towards a Preliminary Economic Assessment (PEA) for a potential high-grade underground mining operation.