Andean Silver’s $30M Placement at $1.85 Shares Boosts Cash to $64M
Andean Silver Limited has raised A$30 million through a placement and aims to raise an additional A$3 million via a Share Purchase Plan to fund accelerated drilling and development at its Cerro Bayo Silver-Gold Project in Chile.
- A$30 million placement at A$1.85 per share with 11.5% discount
- Additional A$3 million targeted through a non-underwritten Share Purchase Plan
- Funds to accelerate drilling, resource growth, exploration, and permitting
- Plans to deliver a resource upgrade and advance capital-light restart in 2026
- Strong cash position of approximately A$64 million post-raise
Capital Raising to Fuel Growth
Andean Silver Limited (ASX – ASL) has successfully secured A$30 million through a placement of over 16 million shares priced at A$1.85 each, representing an 11.5% discount to the last sale price. The company also announced a Share Purchase Plan (SPP) targeting an additional A$3 million at the same price, aimed at giving existing shareholders a chance to increase their holdings without brokerage fees.
This capital raise is designed to underpin a range of growth initiatives at the Cerro Bayo Silver-Gold Project, located in Chile’s Aysen region. With a strong cash position expected to reach approximately A$64 million after the placement and SPP, Andean is well positioned to accelerate its exploration and development activities.
Strategic Use of Funds
The proceeds will primarily fund expanded drilling programs focused on resource growth and conversion, as well as regional exploration to identify new opportunities. Additionally, Andean plans to evaluate potential land acquisitions near Cerro Bayo, complete permitting for new drilling areas, and advance project studies and development work. These efforts are critical to advancing the project towards a capital-light restart, leveraging existing infrastructure to expedite production readiness.
CEO Tim Laneyrie highlighted the company’s abundant growth opportunities, emphasizing the importance of the funding to unlock value through drilling and project advancement. The company aims to deliver a resource upgrade in early 2026, which could further enhance the project's scale and attractiveness.
Market Position and Outlook
Andean Silver’s Cerro Bayo Project currently hosts an Indicated and Inferred Mineral Resource of 9.8 million tonnes grading 353 grams per tonne silver equivalent, containing approximately 111 million ounces of silver equivalent. The company’s strategy to rapidly grow and upgrade this resource aligns with its vision to establish a globally significant silver-gold asset.
With Canaccord Genuity and Euroz Hartleys acting as Joint Lead Managers, and SCP Resource Finance as Co-Manager, the placement was well supported by institutional and sophisticated investors. The SPP, while non-underwritten, offers retail shareholders an opportunity to participate in the company’s growth story.
Looking ahead, the company’s ability to execute its drilling programs, secure necessary permits, and potentially expand its land holdings will be key drivers of value creation. The planned resource upgrade and ongoing exploration results will be closely watched by the market.
Bottom Line?
Andean Silver’s fresh capital injection sets the stage for a pivotal year of exploration and development at Cerro Bayo in 2026.
Questions in the middle?
- Will the Share Purchase Plan achieve its A$3 million target given it is non-underwritten?
- How significant will the upcoming resource upgrade be in terms of expanding Cerro Bayo’s resource base?
- What are the prospects and timelines for potential land acquisitions near Cerro Bayo?
