Mithril Silver & Gold Secures C$10M to Accelerate Copalquin Exploration
Mithril Silver and Gold Limited has announced a C$10 million brokered private placement to fund expanded exploration at its Copalquin district project in Mexico. The raise includes an option for agents to increase the placement by 15%, underscoring strong investor interest.
- C$10 million private placement of 27.78 million shares at C$0.36 each
- Agents granted option to sell an additional 15% of shares
- Proceeds earmarked for accelerated drilling at Copalquin project in Mexico
- Placement subject to regulatory approvals, closing expected by July 29, 2025
- 6% cash commission and compensation options granted to agents
Funding the Next Phase of Exploration
Mithril Silver and Gold Limited, dual-listed on the TSX Venture Exchange and ASX, has taken a significant step to advance its flagship Copalquin district project in Durango State, Mexico. The company announced a brokered private placement raising C$10 million through the issuance of 27.78 million common shares priced at C$0.36 each. This capital injection is designed to accelerate exploration and drilling activities in one of Mexico’s prolific precious metals districts.
Strategic Placement and Agent Incentives
The private placement is led by Ventum Financial Corp. acting as lead agent and sole bookrunner, with a syndicate of agents involved. Notably, the agents have been granted an option to sell an additional 15% of the offering on the same terms, potentially increasing the total funds raised. In return for their services, the agents will receive a 6% cash commission on gross proceeds and compensation options exercisable into shares at the offering price, incentivizing them to maximize the placement’s success.
Regulatory and Market Considerations
The placement will be conducted under exemptions from prospectus requirements across Canadian provinces and utilizes Mithril’s available placement capacity under ASX Listing Rules. The closing date is targeted for July 29, 2025, subject to regulatory approvals including from the TSX Venture Exchange. All shares issued will be subject to a statutory hold period of four months plus one day, a standard measure to maintain market stability post-issuance.
Implications for Copalquin and Beyond
The Copalquin district project covers an extensive 70 square kilometre mining district within the renowned Sierra Madre Gold Silver Trend, a region known for world-class deposits. The fresh capital will enable Mithril to intensify its drilling program, potentially unlocking new mineral resources and advancing the project’s development timeline. Beyond exploration, funds will also support working capital and general corporate purposes, ensuring operational flexibility.
Looking Ahead
While the raise signals strong investor confidence in Mithril’s prospects, the company’s forward-looking statements caution that exploration outcomes and regulatory approvals carry inherent uncertainties. The market will be watching closely for updates on drilling results and the successful closing of the placement, which together will shape Mithril’s trajectory in the competitive precious metals sector.
Bottom Line?
Mithril’s C$10 million raise sets the stage for a pivotal exploration push, but execution and regulatory hurdles remain key to watch.
Questions in the middle?
- Will the agents fully exercise their 15% option, increasing total funds raised?
- How will accelerated drilling impact resource estimates at Copalquin in the near term?
- What regulatory challenges could delay the closing or affect share liquidity?
