SILVER MOUNTAIN RESOURCES CLOSES PREVIOUSLY-ANNOUNCED UPSIZED "BOUGHT DEAL" PUBLIC OFFERING FOR APPROXIMATELY $30 MILLION, INCLUDING FULL EXERCISE OF OVER-ALLOTMENT OPTION
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On November 18, 2025, Silver Mountain Resources announced the closing of its previously announced "bought deal" public offering. The offering was upsized from its initial announcement, raising gross proceeds of approximately C$29.9 million. A total of 11,500,000 units were issued at a price of C$2.60 per unit, which included the full exercise of the over-allotment option.
Each unit consists of one common share, one half-share purchase warrant (Series A), and one half-share purchase warrant (Series B). Each whole Series A warrant allows the holder to purchase one common share at an exercise price of C$3.25 for 6 months. Each whole Series B warrant allows the holder to purchase one common share at an exercise price of C$3.90 for 24 months.
The proceeds will be used for exploration activities, capital improvements to plant and infrastructure, working capital, and general corporate purposes.
This financing is a material and positive event for the company. The successful closing of a C$30 million financing, double the initially announced C$15 million, demonstrates significant investor confidence and market demand for the company's equity.
- Strengthened Balance Sheet: This capital injection, following a C$25 million financing in July 2025, places the company in a very strong financial position. Review of the interim financials from June 30, 2025, showed a cash position of only C$1.55 million, indicating a critical need for funding. The company has now raised approximately C$55 million in just over four months, effectively eliminating near-term financing risk.
- Path to Production Fully Funded: The stated use of proceeds aligns directly with the company's strategic plan to restart the Reliquias mine. In September 2025, the company announced it was commencing preparatory activities for a restart, targeting completion by the end of Q3 2026. This C$30 million provides the necessary capital to execute this development plan.
- De-risking Event: Following major de-risking milestones earlier in the year—including receiving the final government approval to restart operations (December 2024) and securing a 20-year land use agreement (July 2025)—this financing addresses the last major hurdle: funding. The primary risk for the company now shifts from financing and permitting to operational execution.
- Warrant Overhang: While positive, the financing structure adds a significant number of warrants to the capital structure. The 11.5 million Series A warrants at C$3.25 and 11.5 million Series B warrants at C$3.90 create a considerable potential for future share dilution. This overhang could create selling pressure as the stock price approaches these exercise levels.
In conclusion, the news is highly positive as it secures the company's financial future and paves the way for the planned mine restart. The ability to upsize the deal so substantially underscores strong market support.
Silver Mountain Resources Inc. is a Canadian-based resource company focused on the exploration and development of its 100%-owned Reliquias silver project in the Huancavelica department of Peru. The flagship project is a past-producing, high-grade silver-polymetallic mine and the associated Caudalosa processing plant. The company's strategy is to bring the mine back into production. Throughout 2025, it has successfully secured all necessary community and governmental approvals to restart operations, with a stated production target of approximately 2.5 million silver-equivalent ounces annually beginning in 2026. The company's properties are royalty-free.