SilverCrest Metals (TSE: SIL) announced Wednesday that it has entered into an agreement with a syndicate of underwriters led by National Bank Financial, Eight Capital and Scotia Capital, where the underwriters have agreed to purchase, on a bought-deal basis, 9.1 million common shares of the company at C$8.25 per share for aggregate gross proceeds of C$75. Million (about $54 million).
In January, SSR Mining elected to exercise its equity participation right pursuant to its agreement with SilverCrest to purchase — on a private placement basis — for total consideration of C$13.2 million. SSR owns 7.6% of Silvercrest’s shares.
The Vancouver-based miner said it intends to use the net proceeds of Wednesday’s deal for continued exploration and development of the Las Chispas project in Mexico and for general working capital.
The offer is expected to close around April 3, 2020 and is subject to regulatory approvals and the approval of the TSE and NYSE.
Wednesday afternoon, Silvercrest’s stock was down over 11% on the TSE. The day’s trading volume reached 1.3 million, over three times the daily average. The company has a C$830 million market capitalization.