Black Bear Minerals Raises $12.5M to Accelerate Shafter Silver Drilling

Strong Institutional Backing for $12.5M Placement

Black Bear Minerals (ASX:BKB) has successfully secured firm commitments to raise $12.5 million through a placement priced at $0.55 per share, representing a 16% discount to the last traded price. The raise drew strong support from both new and existing domestic and international institutional investors, underpinning confidence in the company’s flagship Shafter Silver Project in Texas. Executive Chair Matthew Hayes plans to subscribe for $500,000 in shares, pending shareholder approval at the upcoming Annual General Meeting.

Funding Directed to Drilling and Resource Conversion

The net proceeds will primarily fund a Stage 1 underground drilling program aimed at expanding and defining the Shafter resource. This includes resource validation and infill drilling to support the conversion of the current foreign mineral resource estimate, prepared under Canadian NI 43-101 standards, to JORC-compliant reporting. Additionally, the funds will advance permitting, restart engineering, and mine planning studies, while also providing working capital and the option to cash settle part of the deferred acquisition consideration for Shafter.

Shafter Silver Project’s Strategic Position

Located in Presidio County, Texas, the Shafter Project benefits from substantial existing infrastructure, including a modern permitted Merrill-Crowe processing plant, grid-connected power, water rights, and extensive underground workings. The project hosts a high-grade foreign mineral resource estimate totaling 17.57 million ounces of silver at an average grade of 289 g/t, although this estimate has yet to be converted to JORC standards. Black Bear is actively working on this conversion alongside ongoing exploration targeting the largely untested 2.4km MacDaniel Trend and shallow polymetallic mineralisation with assays up to 3,100 g/t silver and significant lead and zinc grades, highlighting broader upside potential.

Supporting Growth with Independence Gold Project

Beyond Shafter, Black Bear’s Independence Gold Project in Nevada offers complementary exposure to precious metals in a Tier-1 mining jurisdiction. A recent scoping study outlined a low-capital open-pit heap-leach development with a post-tax NPV of approximately A$511 million and a 64% IRR, targeting near-surface epithermal mineralisation. This study, based on a portion of the resource, excludes larger epithermal and skarn zones, leaving room for future resource expansion and technical updates.

Placement Terms and Next Steps

The placement involves issuing 22.7 million new shares, with 21.8 million shares issued under existing placement capacity and 909,091 shares reserved for the Executive Chair's subscription, subject to shareholder approval. Canaccord Genuity acted as Sole Lead Manager and Bookrunner. Settlement and allotment of shares are expected in early September, with shareholder approval sought in November for the Director Subscription. Investors will be watching closely for progress on drilling results, JORC conversion, and permitting milestones that will shape the project’s path toward a potential restart decision.