Silver Mines Raises $34M, Advances Bowdens Consent, Acquires US Projects

Regulatory Progress at Bowdens Silver Project

Silver Mines Limited continues to navigate the complex regulatory landscape surrounding its flagship Bowdens Silver Project in New South Wales. Following a landmark court decision in August 2024 that overturned the Independent Planning Commission's development consent, the company has worked closely with the Department of Planning, Housing and Infrastructure (DPHI) to reinstate the original planning approach. A key development during the quarter was the Planning Secretary's determination that the 66kV power line required to service the mine is not part of the Bowdens Project's State Significant Development (SSD) consent. This effectively restores the prior planning framework, allowing the transmission line to be assessed separately and streamlining the path to project approval.

Silver Mines remains engaged with government agencies and stakeholders, providing additional information to support the redetermination of the development consent. The company also continues extensive community consultation, underscoring its commitment to responsible development and local engagement.

Capital Raising Fuels Development and Exploration

In a strong show of investor confidence, Silver Mines successfully completed a $30 million placement alongside a $4.07 million Share Purchase Plan (SPP), raising a total of $34 million before costs. The placement was well supported by both existing and new institutional investors, with shares issued at a modest discount to recent trading prices. Proceeds from the capital raising are earmarked primarily for advancing the Bowdens Project's development consent approvals, engineering studies, community and land access agreements, and exploration programs across both Australian and US assets.

Strategic Expansion into the United States

During the quarter, Silver Mines completed the acquisition of the Calico North Project and commenced a farm-in agreement to earn up to an 80% interest in the Kramer Hills Project, both located in the mineral-rich Mojave Desert of California. These projects offer significant exploration upside, with historical production and extensive untested mineralised structures. The initial cash outlay was modest, comprising approximately US$1.1 million plus the issuance of shares, with further milestone payments and expenditure commitments planned.

Exploration activities are ramping up, with field mapping, geophysical surveys, and soil sampling underway to generate targets ahead of drilling scheduled for the first half of 2026. These US projects complement Silver Mines' Australian portfolio, providing diversified exposure to silver and gold mineralisation in established mining jurisdictions.

Ongoing Technical and Exploration Work

At Bowdens, Silver Mines continues to advance development studies, including metallurgical testing, geotechnical logging, and the creation of a geo-metallurgical model to optimise mine design and enhance project value. The company is also collaborating with the University of New South Wales and the NSW Geological Survey on cutting-edge research to better understand ore characteristics and improve mining efficiency.

Meanwhile, exploration at the Tuena Gold Project in New South Wales progresses, with recent drilling results under interpretation and soil sampling programs expanding. This project targets structurally controlled gold deposits analogous to nearby significant discoveries.

Financial Position and Outlook

Silver Mines ended the quarter with robust cash reserves of A$43.67 million, supported by the recent capital raise. Quarterly exploration and evaluation expenditure totalled A$5.17 million, focused on advancing both Australian and US projects. The company reported no mining production activities during the period, consistent with its development and exploration stage status.

With regulatory progress at Bowdens, strategic acquisitions in the US, and a strong financial position, Silver Mines is well positioned to advance its growth strategy. The coming months will be critical as the company seeks to reinstate development consent and commence drilling programs that could unlock significant value.