Vancouver-based Aftermath Silver’s (TSX: AAG.H) stock was up over 20% Friday, after it announced it is increasing its non-brokered private placement from 18.7 million units to up to 25 million units at a price of C$0.08 cents per share.
Aftermath said it will use the proceeds for the acquisition and exploration of the Challacollo and Cachinal silver-gold projects in Chile and for general working capital.
Aftermath entered into a non-binding letter of intent with Mandalay Resources to purchase its 100% interest in the Challacollo deposit, which hosts a historic 30 million silver ounce Indicated Mineral Resource (4.7 million tonnes at 200 g/t silver) and a 6.9 million silver ounce Inferred Mineral Resource (1.6 million tonnes of 134 g/t), with associated gold credits.
The Challacollo project is located in Chile’s Tarapaca region, about 130 km southeast of the port city of Iquique.
Aftermath also entered into a definitive agreement with Halo Labs to purchase its 80% interest in the Cachinal silver-gold project in Chile.
The Cachinal project is in Chile’s Antofagasta region and the deposit hosts a current CIM compliant 18.4 million silver ounce Indicated Mineral Resource (5.66 million tonnes of 101 g/t) and 3 million silver ounce Inferred Mineral Resource (0.82 million tonnes of 115 g/t), with associated gold credit.
The deal is subject to the approval of the TSX Venture Exchange. At market close Friday, Aftermath’s shares had been traded 244,000 times, over 100 times the average daily volume of 2,285. The company has a C$2.6 million market capitalization.