AbraSilver Announces Closing of Concurrent Private Placement
AbraSilver secures $52m for Diablillos construction as Kinross closes a $2m stake in the project.
AbraSilver Resource Corp. (ABRA) closed a concurrent private placement of 139,241 common shares to Kinross Gold Corporation at $14.70 per share, generating gross proceeds of approximately $2.05 million. The transaction completes a broader financing package totaling approximately $52 million, which includes a previously closed $50 million bought-deal public offering. Net proceeds from the financing are designated for general corporate purposes. Shares issued to Kinross carry a four-month plus one-day hold period. No direct executive quotes were provided in this closing announcement.
AbraSilver Resource Corp. (ABRA) has completed the closing of its Kinross participation tranche, marking the final execution of the $50 million bought deal announced on July 22 and July 29. The transaction adds incremental liquidity to the company’s balance sheet but introduces no new strategic terms, valuation changes, or operational milestones.
Kinross’s involvement, facilitated through participation rights, was already priced into the market during the initial announcement. The closing of this tranche secures the final portion of the approximately $52 million equity raise, which management intends to allocate toward early works and long-lead equipment procurement at the Diablillos project.
The completion of the financing does not alter the Definitive Feasibility Study (DFS) economics, permitting status, or development timeline. Market reaction to the news is expected to be neutral to mildly positive, consistent with routine financing closings that remove near-term dilution uncertainty without providing new catalysts.
AbraSilver Resource Corp. is a silver-gold development company focused on the 100%-owned Diablillos project in the Puna region of Argentina, which straddles Salta and Catamarca provinces. The project features a conventional open-pit mining operation feeding a 9,000 tpd tank leach processing facility.
A Definitive Feasibility Study (DFS) completed in June 2026 outlines robust economics, including a $3.0 billion USD after-tax NPV5% and 41.9% IRR at base-case metal prices of $50/oz Ag and $3,650/oz Au. Initial production is targeted before year-end 2029, with a Final Investment Decision expected in Q2 2027.
The company also holds an earn-in joint venture with Teck Resources on the La Coipita copper-gold-molybdenum project, where Teck is actively drilling and has identified extensive porphyry-style mineralization. Recent property acquisitions have expanded the Diablillos land package by over 6,200 hectares, securing critical water rights and exploration targets for future throughput expansion.