Sun Silver Limited Announces Successful A$13 Million Capital Raise
SUN SILVER LIMITED (SS1) Share Update September 2024 Tuesday 17th
Sun Silver Secures A$13m Capital Raise with Strategic Investment
Sun Silver Limited (ASX: SS1) has successfully raised A$13 million, including a significant investment from Nokomis Capital, positioning the company for accelerated growth and development of its Maverick Springs Project.
Instant Summary:
- Raised A$13m through a combination of placement and strategic investment.
- Nokomis Capital invested A$9.2m, including A$5m at a premium price of A$0.80 per share.
- The A$0.80 per share investment represents a 10.3% premium to the last traded price.
- Funds will be used to accelerate the development of the Maverick Springs Project.
Capital Raise Details
Sun Silver Limited has announced a successful capital raise of A$13 million, which includes a strategic cornerstone investment from Nokomis Capital. The capital raise consists of an A$8 million placement at A$0.62 per share to new institutional and sophisticated investors, and a strategic cornerstone investment of A$5 million at A$0.80 per share from Nokomis Capital.
The issue price for the strategic investment represents a 10.3% premium to the last traded price of A$0.725 and a 19.8% premium to the 10-day volume-weighted average price (VWAP) of A$0.668. Nokomis Capital's total investment amounts to approximately A$9.2 million, including their participation in the placement.
About Nokomis Capital
Nokomis Capital is a distinguished US-based investment firm known for its long-term strategic approach and successful track record in high-growth sectors. Their investment aligns well with Sun Silver's goals, providing substantial capital and valuable experience to support the company's growth.
Use of Proceeds
The funds raised will be used to accelerate the development of Sun Silver's Maverick Springs Silver Gold Project through exploration expansion drilling, infill drilling, and metallurgical test work. Additionally, the proceeds will support general working capital and cover the costs of the issue.
Placement and Strategic Investment
The placement will involve issuing a total of 12,903,226 shares at A$0.62, including 6,721,540 shares to Nokomis Capital. The placement issue price represents a 14.5% discount to the last traded price and a 7.2% discount to the 10-day VWAP.
In addition to the placement, Nokomis Capital will subscribe for an additional 6,250,000 shares at A$0.80 per share. This investment will be issued in two tranches, with the second tranche subject to shareholder approval at a general meeting in October 2024.
Strategic Importance
Sun Silver's Executive Director, Gerard O'Donovan, highlighted the significance of the capital raise, stating, 'The successful capital raise of A$13 million, including A$5 million at a premium price, represents a transformational milestone for Sun Silver. We are excited to welcome all new investors, particularly our strategic cornerstone investor, Nokomis Capital.'
The successful capital raise and strategic investment from Nokomis Capital are likely to have a positive impact on Sun Silver's stock. The premium investment price indicates strong confidence in the company's future prospects. This capital infusion will enable Sun Silver to accelerate the development of its Maverick Springs Project, potentially increasing the company's value and attractiveness to investors.
Investor Reaction:
Analysts are expected to react positively to the news, given the premium investment price and the strategic alignment with Nokomis Capital. The market may view this as a strong endorsement of Sun Silver's potential, leading to increased investor confidence and interest in the company's stock.
Conclusion:
Sun Silver's successful capital raise and strategic investment from Nokomis Capital mark a significant milestone for the company. Investors should monitor the progress of the Maverick Springs Project and consider the potential long-term benefits of this capital infusion. The company's strategic partnerships and accelerated project development could lead to substantial growth and value creation.