Mithril Silver & Gold Secures C$11.5M to Boost Copalquin Exploration

Capital Raise to Accelerate Exploration

Mithril Silver and Gold Limited (ASX – MTH, TSXV – MSG) has announced a significant capital raising effort, aiming to secure up to C$11.5 million through a placement of new shares. The funds will be directed primarily towards accelerating exploration activities at its Copalquin project in Durango State, Mexico, a district known for its high-grade gold and silver mineralisation within the Sierra Madre Gold Silver Trend.

The placement involves issuing up to 31.94 million shares at a price of C$0.36 per share, representing an approximate 8% discount to the last closing price before the trading halt. This discount reflects a strategic move to attract strong institutional interest, which the company confirms has been robust, drawing participation from Australian, North American, and international investors.

Strategic Use of Proceeds and Placement Terms

The net proceeds from the placement will fund intensified drilling programs and ongoing exploration efforts, as well as provide working capital to support the company’s operational needs. Mithril has already mobilised a second drill rig at Copalquin and plans to add a third by late 2025, signalling a transformational phase in its exploration campaign.

Importantly, the placement shares will be issued under the company’s existing placement capacity on the ASX, avoiding the need for shareholder approval and enabling a swift capital injection. The company has appointed Ventum Financial Corp. as lead agent, with agents granted an option to raise an additional 15% of the placement size, potentially increasing total funds raised to C$11.5 million.

Incentives and Market Confidence

As part of the arrangement, the agents will receive a 6% fee on gross proceeds and compensation options exercisable at the placement price, valid for two years. This aligns incentives for the agents to support the company’s capital raising efforts effectively.

CEO John Skeet highlighted the strong backing from both existing shareholders and new institutional investors as a vote of confidence in Copalquin’s potential. The company’s expanded technical team has made notable progress in defining multiple high-priority drill targets, with ongoing mapping and sampling reinforcing the district’s promise as a significant precious metals resource.

Looking Ahead

The placement is expected to close by July 24, 2025, subject to regulatory approvals including those from the TSX Venture Exchange. Shares issued will rank equally with existing shares and be subject to standard statutory hold periods. This capital injection positions Mithril to accelerate its exploration timeline and potentially unlock value in one of Mexico’s most prospective gold-silver districts.