Andean Silver Raises $30M, Cash Balance Hits $42M to Accelerate Cerro Bayo Growth

Capital Injection to Accelerate Exploration

Andean Silver Limited (ASX – ASL) has successfully completed a A$30 million placement priced at A$1.20 per share, marking a significant step forward for the Cerro Bayo Silver-Gold Project in Chile’s Aysen region. This capital raise, well supported by institutional investors; particularly those based in the northern hemisphere; boosts Andean’s pro forma cash position to around A$42 million, providing the financial firepower to rapidly advance exploration and development activities.

Targeting Resource Growth and Upgrades

The fresh funds are earmarked for a multi-pronged approach to unlock Cerro Bayo’s substantial upside. Drilling campaigns will focus on both brownfield and greenfield areas to expand the existing mineral resource base. A key priority is converting Inferred Resources into Measured and Indicated categories, which typically command higher market valuations due to increased geological confidence. This upgrade is critical to underpinning forthcoming mining and metallurgical studies.

Advancing Mining Restart and Feasibility Studies

Beyond exploration, Andean plans to accelerate mining restart studies, including metallurgical and geotechnical test work, feeding into an internal scoping study. The company also intends to initiate feasibility studies, a vital step toward demonstrating Cerro Bayo’s production potential and attracting further investment. CEO Tim Laneyrie highlighted the exceptional pipeline of value-creating opportunities now accessible thanks to the strengthened balance sheet.

Market Context and Sector Re-rating

The timing of this capital raise aligns with a broader re-rating in the silver sector, driven by forecasts of supply deficits and heightened merger and acquisition activity. Andean’s move to secure funding ahead of these trends positions it well to capitalize on improving market sentiment. The placement price represented a modest discount to recent trading levels, reflecting a balance between investor appetite and prudent capital management.

Looking Ahead

With a robust cash position and a clear strategic focus, Andean Silver is poised to rapidly advance Cerro Bayo toward becoming a globally significant silver-gold asset. The coming months will be critical as drilling results and study updates begin to materialize, potentially reshaping investor perceptions and the company’s valuation trajectory.