Silver Tiger closes $40-million bought deal

Executive Summary

• Silver Tiger Metals Inc. has closed a bought deal financing raising approximately C$40,004,000 through the sale of 54.8 million common shares.
• The shares were sold at a price of 73 cents per share to a syndicate of underwriters led by BMO Capital Markets and Stifel Nicolaus Canada Inc.
• Proceeds will be used to finance exploration and development at the El Tigre project in Mexico, as well as for working capital and general corporate purposes.

Key Details

• Transaction Structure: Bought deal offering of common shares.
• Shares Sold: 54.8 million common shares.
• Price Per Share: C$0.73.
• Gross Proceeds: Approximately C$40,004,000.
• Underwriters: Joint bookrunners were BMO Capital Markets and Stifel Nicolaus Canada Inc.; other participants included Canaccord Genuity Corp., Desjardins Securities Inc., and Ventum Financial Corp.
• Underwriter Commission: 5.5% cash commission on gross proceeds.
• Use of Proceeds: Exploration and development expenditures at the El Tigre project (Mexico), working capital, and general corporate purposes.
• Regulatory Status: Completed via short form prospectus in all Canadian provinces except Quebec and outside Canada.
• Project Context (El Tigre):
  • 100%-owned, 28,414-hectare historic mining district in Sonora, Mexico.
  • Drilled over 150,000 metres total (119,000m since 2020).
  • Maiden MRE in 2017; MRE updates in 2023 and 2024.
  • Preliminary Economic Assessment (PEA) released November 2023.
  • Preliminary Feasibility Study (PFS) released October 2024.
  • PFS Economics (5% discount rate): After-tax NPV of $222 million USD, After-tax IRR of 40.0%, Payback period of 2.0 years.
  • Mine Life: 10 years.
  • Life of Mine Undiscounted After-Tax Cash Flow: $318 million USD.
  • Initial Capital Costs: $86.8 million USD (including $9.3 million USD contingency).
  • Operating Cash Costs: $973 USD/oz AuEq and $12 USD/oz AgEq.
  • AISC: $1,214 USD/oz AuEq and $14 USD/oz AgEq.
  • Price Assumptions: $26 USD/oz Silver and $2,150 USD/oz Gold.

Notable Quotes

• No direct quotes from the CEO or President were included in the provided text.