Mithril’s C$11.5M Raise Highlights Exploration Risks Amid Copalquin Ambitions
Mithril Silver and Gold Limited has successfully closed a C$11.5 million brokered private placement, positioning the company to advance its Copalquin district project in Mexico while bolstering working capital.
- Raised C$11.5 million through brokered private placement
- Issued 31.9 million ordinary shares at C$0.36 each
- Full exercise of agents’ option included
- Funds earmarked for Copalquin project advancement and corporate needs
- Agents received 6% cash fee and compensation options
Capital Raise Overview
Mithril Silver and Gold Limited, dual-listed on the ASX and TSXV, has completed a significant capital raise through a brokered private placement, securing gross proceeds of C$11.5 million. The company issued nearly 32 million ordinary shares at a price of C$0.36 each, including shares from the full exercise of the agents’ option, which allowed an additional 4.17 million shares to be sold beyond the initial offering.
Strategic Use of Funds
The net proceeds from this placement are earmarked primarily to advance Mithril’s flagship Copalquin district project located in Durango State, Mexico. This project sits within the prolific Sierra Madre Gold Silver Trend, a region known for hosting world-class precious metals deposits. Beyond exploration and development activities, the funds will also support working capital and general corporate purposes, providing the company with financial flexibility as it progresses.
Broker and Agent Details
The placement was led by Ventum Financial Corp. as the lead agent and sole bookrunner, alongside Arlington Group Asset Management Ltd., Raymond James Ltd., and Cormark Securities Inc. The agents received a 6% cash commission on the gross proceeds, amounting to approximately C$690,000, and were also granted compensation options exercisable over two years at the offering price, aligning their interests with the company’s future performance.
Regulatory and Market Context
Shares issued under the placement are subject to a statutory hold period expiring in late November 2025, ensuring a controlled release into the market. The offering was conducted under exemptions from prospectus requirements and utilized the company’s available placement capacity under ASX rules. Notably, the securities are not registered for sale in the United States, reflecting regulatory compliance considerations.
Looking Ahead
With this capital injection, Mithril is well-positioned to accelerate exploration and development at Copalquin, a district covering an extensive 70 square kilometers within a highly prospective geological trend. The company’s management, led by CEO John Skeet, has reaffirmed its commitment to advancing the project while maintaining prudent financial management amid the inherent risks of mineral exploration.
Bottom Line?
Mithril’s fresh capital boost sets the stage for critical exploration milestones, but investors will watch closely for tangible progress at Copalquin.
Questions in the middle?
- What specific exploration milestones will Mithril target with the new funds?
- How will the statutory hold period impact share liquidity and market dynamics?
- What are the potential risks that could delay advancement of the Copalquin project?
