West Coast Silver Raises $6.1M to Accelerate Elizabeth Hill Exploration

Capital Injection to Accelerate Exploration

West Coast Silver Limited (ASX, WCE) has successfully raised $6.125 million through a share placement priced at $0.11 per share, slightly above its recent volume weighted average price. The capital raise attracted strong interest from both new institutional investors and existing sophisticated shareholders, underscoring market confidence in the company’s exploration strategy at its flagship Elizabeth Hill silver project.

The funds will be deployed to expand the ongoing drilling campaign, which has already yielded promising near-surface mineralisation results. The company plans to intensify exploration efforts not only around the immediate mine area but also across the broader regional land package, which holds significant untapped potential.

Elizabeth Hill, A High-Grade Silver Asset with Growth Potential

Elizabeth Hill stands out as one of Australia’s historically high-grade silver projects, having produced approximately 1.2 million ounces of silver from a modest 16,830 tonnes of ore at an exceptional grade of 2,194 grams per tonne. Mining operations ceased in 2000 due to low silver prices at the time, but recent consolidation of surrounding tenements and new drilling results suggest considerable upside remains.

The project benefits from its location within a tier-one mining jurisdiction and proximity to existing processing infrastructure at the nearby Radio Hill site. The contiguous 180 square kilometre land package includes a significant portion of the prospective Munni Munni fault system, which is considered highly prospective for additional silver deposits similar to Elizabeth Hill.

Strategic Use of Funds and Next Steps

West Coast Silver intends to use the proceeds to define the extent of near-surface mineralisation more precisely, advance near-mine and regional exploration, and initiate internal studies aimed at restarting operations. The placement will be issued in two tranches, with the second tranche involving director participation subject to shareholder approval at the upcoming general meeting.

CPS Capital Group acted as lead manager for the placement and will receive standard fees alongside options, also pending shareholder approval. Executive Chairman Bruce Garlick highlighted the company’s ambition to accelerate value creation, noting the strong start to drilling and the clear potential to expand the project’s resource base.

Investor Sentiment and Market Implications

The successful capital raise reflects robust investor appetite for high-grade silver assets amid a supportive market environment. However, as with all exploration ventures, the path forward carries inherent uncertainties, including the need for continued positive drilling results and regulatory approvals. The company’s ability to convert exploration success into a viable mining operation will be closely watched by the market.