AbraSilver Announces Closing of C$50 Million "Bought Deal" Public Offering of Common Shares
AbraSilver raised C$50M in equity to fund the Diablillos DFS and advance early works toward a 2029 final investment decision.
AbraSilver Resource Corp. (ABRA) closed a C$50 million bought-deal public offering of 3,401,000 common shares at C$14.70 per share. The offering included the full exercise of the over-allotment option. A concurrent private placement of up to 139,241 shares to Kinross Gold Corporation is expected, raising up to C$2.05 million.
Net proceeds will fund early works and long-lead time equipment procurement for the Diablillos project, alongside general corporate purposes. Underwriters for the transaction include National Bank Financial, Beacon Securities, and Raymond James.
AbraSilver Resource Corp. (ABRA) announced a financing initiative that serves as a direct follow-up to its July 22 announcement, aligning with the company's stated roadmap to fund early development following the completion of the Definitive Feasibility Study (DFS). The shares were issued at a price of C$14.70, a level consistent with recent trading activity that indicates fair valuation at the time of issuance and avoids significant discount dilution.
Kinross Gold participated in the transaction via a concurrent private placement, a move that reinforces strategic interest and provides validation of the project's fundamentals. The financing resulted in approximately 2.2% dilution from the public offering and roughly 0.1% from Kinross, figures considered manageable and expected for a development-stage company advancing toward a Final Investment Decision (FID). This capital raise confirms management's execution capability in securing necessary funds to transition from the DFS phase to early works.
AbraSilver Resource Corp. is a silver-gold development company focused on the 100%-owned Diablillos project in the Salta/Catamarca border region of Argentina. The project has completed a Definitive Feasibility Study (DFS) and secured all principal provincial environmental approvals (DIA), positioning it as a construction-ready asset.
DFS economics at base-case metal prices ($50/oz Ag, $3,650/oz Au) show an after-tax NPV5% of US$3.0 billion, an IRR of 41.9%, and a 1.7-year payback period. The mine plan outlines a 9,000 tpd tank leach operation targeting first production before year-end 2029, with a 25-year life of mine.
The company also holds a secondary asset, the La Coipita copper-gold-molybdenum project in San Juan, Argentina, under an earn-in joint venture with Teck Resources.