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TORONTO, Feb. 7, 2025 /CNW/ - AbraSilver Resource Corp. (TSXV: ABRA) ("AbraSilver" or the "Company") is pleased to announce the successful closing of its previously announced bought deal public offering (the "Offering") of 11,765,650 common shares of the Company (the "Common Shares") at a price of $2.55 per Common Share (the "Issue Price") for aggregate gross proceeds of $30,002,407.50. This total includes the full exercise of the over-allotment option.
AbraSilver logo (CNW Group/AbraSilver Resource Corp.)
The Offering was completed pursuant to an underwriting agreement dated February 4, 2025 (the "Underwriting Agreement") entered into among the Company and a syndicate of underwriters, led by National Bank Financial Inc. and Beacon Securities Limited, acting as co-bookrunners, and including Raymond James Ltd., Scotia Capital Inc. and TD Securities Inc. (collectively, the "Underwriters"). In connection with the Offering, the Company paid the Underwriters a cash commission equal to 6.0% of the aggregate gross proceeds raised.
Net proceeds from the Offering will be used to fund the continued advancement of the 100%-owned Diablillos silver-gold project in the Salta province of Argentina, as well as for general corporate purposes.
In addition to and concurrent with the Offering, the Company intends to complete its previously announced private placement (the "Concurrent Private Placement") of up to 11,193,565 Common Shares in connection with the exercise of participation rights held by an affiliate of Central Puerto S.A. ("Central Puerto") and Kinross Gold Corporation ("Kinross"), at the Issue Price, for aggregate gross proceeds of up to $28,543,590.75. In connection with the Concurrent Private Placement, the Company may pay an arm's length finder a cash commission of up to 3.0% of the proceeds raised from Central Puerto. The Common Shares sold pursuant to the Concurrent Private Placement will be subject to a hold period of four months plus one day from the closing date of the Concurrent Private Placement. The closing of the Concurrent Private Placement is expected to occur on or about February 11, 2025 and is subject to the Company receiving all necessary approvals, including the conditional approval from the TSX Venture Exchange.
The Offering was completed in all provinces and territories of Canada, except Quebec and Nunavut, pursuant to a prospectus supplement (the "Supplement") dated February 4, 2025 to the Company's short form base shelf prospectus dated April 14, 2023 (the "Base Shelf Prospectus"), filed with the securities regulatory authorities in each of the provinces and territories of Canada, and in the United States on a private placement basis pursuant to an exemption from the registration requirements of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act") and applicable state securities laws and other jurisdictions. Copies of the Supplement, the Base Shelf Prospectus and the Underwriting Agreement are available under the Company's profile on SEDAR+ at www.sedarplus.ca.
This press release is not an offer to sell or the solicitation of an offer to buy the securities in the United States or in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to qualification or registration under the securities laws of such jurisdiction. The securities being offered have not been, nor will they be, registered under the U.S. Securities Act, and such securities may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent registration or an applicable exemption from U.S. registration requirements and applicable U.S. state securities laws.
About AbraSilver
AbraSilver is an advanced-stage exploration company focused on rapidly advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta and Catamarca provinces of Argentina. The current Proven and Probable Mineral Reserve estimate for Diablillos, consists of 42.3 Mt grading 91 g/t Ag and 0.81 g/t Au, containing approximately 124 Moz silver and 1.1 Moz gold, with significant further exploration upside potential. In addition, the Company has entered into an earn-in option and joint venture agreement with Teck on the La Coipita project, located in the San Juan province of Argentina. AbraSilver is listed on the TSX-V under the symbol "ABRA" and in the U.S. on the OTCQX under the symbol "ABBRF."
For further information please visit the AbraSilver Resource website at www.abrasilver.com, our LinkedIn page at AbraSilver Resource Corp., and follow us on X at www.x.com/abrasilver.
Cautionary Note Regarding Forward-Looking Information
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation, including in respect of the Offering, the Concurrent Private Placement, the expected closing date of the Concurrent Private Placement and the use of net proceeds thereof. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in the Company's disclosure documents filed with the applicable Canadian securities regulatory authorities on SEDAR+ at www.sedarplus.ca. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
