Unico Silver’s $40M Raise Boosts Drilling Plans Amid Share Discount Risks

Capital Raise Completed

Unico Silver Limited (ASX, USL) has successfully completed a significant capital raising through a placement of 72,727,273 fully paid ordinary shares at an issue price of $0.55 per share, generating $40 million before expenses. This follows the company’s announcement earlier in November and marks a major step in funding its ongoing exploration and development activities.

Share Purchase Plan Launch

In tandem with the placement, Unico Silver has launched a Share Purchase Plan (SPP) targeting to raise up to $5 million from eligible shareholders in Australia and New Zealand. The SPP offers shareholders the opportunity to subscribe for shares at the same $0.55 price, which represents an 18.5% discount to the last traded price prior to the placement. Eligible shareholders can apply for parcels ranging from $2,000 up to $30,000 without brokerage fees, with the offer opening on 24 November and closing on 17 December 2025.

Use of Proceeds

The combined proceeds from the placement and SPP will be directed towards advancing Unico Silver’s exploration program, including extensional and infill drilling as well as regional drilling of new discoveries. Additionally, funds will support a mineral resource update, scoping study, and pre-feasibility study (PFS) costs. A notable allocation includes a US$2 million contingent cash payment to Pan American Silver, triggered by the release of the maiden feasibility study as per their 2024 agreement. Remaining funds will bolster general working capital.

Strategic Implications

This capital raising enhances Unico Silver’s financial position, enabling the company to accelerate its project development timeline and potentially increase the scale of its resource base. The discounted pricing of the placement and SPP shares may exert short-term pressure on the share price, but the infusion of capital is critical for sustaining momentum in exploration and feasibility efforts. The SPP’s non-renounceable nature ensures that only existing eligible shareholders can participate, potentially consolidating shareholder support.

Next Steps

Investors will be watching closely for the SPP subscription results, expected to be announced by 22 December 2025, and the subsequent trading of SPP shares on the ASX. The company’s progress on drilling results and feasibility studies funded by this raise will be key indicators of its future trajectory and valuation potential.