Silver Tiger Announces Closing of C$57,501,288 Bought Deal Financing
Silver Tiger Secures Massive War Chest for El Tigre Development but Recent Financing Participants Face Immediate 23% Underwater Position
On February 18, 2026, Silver Tiger Metals Inc. (SLVR) closed a significant bought deal financing, raising gross proceeds of C$57,501,288. The offering consisted of 49,146,400 common shares at a price of C$1.17 per share. There were no warrants attached to this financing, which is a rare and structurally positive sign for a junior mining company. The funds are earmarked for exploration and development at the flagship El Tigre Project in Sonora, Mexico, as well as working capital. This follows the January 20, 2026, announcement of a dual-track economic update: a Preliminary Economic Assessment (PEA) for an underground mine (NPV US$304M) and an updated Pre-Feasibility Study (PFS) for the Stockwork Zone (NPV US$456M).
The impact is Material - Positive for the company's balance sheet but carries a short-term negative sentiment for the stock price. - Strategic De-risking: Raising over C$57M in a single shot provides the necessary "early-stage" construction capital and working capital to move toward a final investment decision. - Significant Dilution: The company issued approximately 49.1 million shares. Since September 2025, the share count has ballooned from ~411 million to an estimated ~555 million, representing a ~35% increase in share count in just five months. - Pricing Mismatch: The financing was priced at C$1.17. The current market price of C$0.90 represents a 23% discount to the price paid by the "bought deal" investors less than a month ago. This creates a massive "overhang" of investors who are currently losing money and may sell at breakeven ($1.17), creating heavy resistance. - Project Legitimacy: The ability to raise C$57M with lead underwriters like BMO Capital Markets and Stifel Canada suggests strong institutional backing for the revised project economics.
Silver Tiger Metals is focused on the El Tigre Project in Sonora, Mexico. The property covers the historic El Tigre mine, which produced 67M oz of silver and 353k oz of gold historically. - Flagship Project: El Tigre. - Open Pit (Stockwork Zone): 10-year mine life, US$456M after-tax NPV (5%), and a 65.7% IRR. - Underground Project: 15-year mine life, US$304M after-tax NPV (5%), and a 42.8% IRR. - Stage: Moving from Exploration/PFS to Construction/Development.