Unico Silver funds next phase of Joaquin development with A$60 million raise
Unico Silver has secured approximately A$60 million from institutional and sophisticated investors, taking pro forma cash to about A$110 million. The capital will fund 20,000 metres of drilling, a maiden PFS due in January 2027 and continued advancement of a DFS through 2027.
- A$60 million institutional placement at A$0.76 per share
- Pro forma cash rises to approximately A$110 million
- 20,000 metres of resource and extensional drilling planned
- Maiden PFS targeted for January 2027
- DFS work and mining approvals targeted through 2027
A$60 Million Placement Expands Unico’s Development Runway
Unico Silver Limited (ASX:USL; OTCQX: USLRF) has raised approximately A$60 million in a single-tranche institutional placement, giving the Argentine silver-gold developer pro forma cash of about A$110 million before placement costs. The funding is intended to carry the Joaquin and Cerro Leon projects through a larger exploration program, the maiden Pre-Feasibility Study and substantial Definitive Feasibility Study work.
The issue price of A$0.76 represents a 10.1% discount to Unico’s last closing price of A$0.845 and a 10.4% discount to its five-day VWAP of A$0.848. Around 78.9 million new shares will be issued under existing placement capacity, taking the company’s ordinary shares on issue to approximately 721 million once completed. That makes the capital raise immediately useful for funding, but not costless for existing shareholders.
Drilling and Study Work Move Into the Funded Phase
Unico plans to deploy 20,000 metres of resource growth and extensional drilling across Joaquin and Cerro Leon, with the results intended to support an updated Mineral Resource Estimate and the maiden PFS. The company is targeting completion of that PFS by January 2027, while advancing the DFS through the end of 2027.
The planned DFS expenditure includes long-lead activities such as metallurgical drilling, detailed engineering and baseline environmental studies. Managing Director Todd Williams said the company would use the funding to avoid a stop-start transition between the PFS and DFS, while several rigs undertake geotechnical, metallurgical and water drilling alongside regional exploration.
Resource Base and Approval Milestones Set the Test
Unico holds a 100% interest in the Joaquin and Cerro Leon projects in Argentina’s central Deseado Massif. The company reports a combined resource of approximately 330 million ounces of silver equivalent, comprising 167 million ounces at Joaquin and 162 million ounces at Cerro Leon. Those figures are reported on project-specific metal-equivalent assumptions and are not production forecasts.
Part of the placement proceeds is also earmarked for a contingent acquisition payment to Pan American Silver, payable when the maiden feasibility study is released, as well as working capital and corporate costs. Settlement of the placement is expected on 30 September 2026, with the new shares expected to be allotted and quoted on 1 October, subject to the indicative timetable and applicable requirements. The next hard evidence of execution will come from the drilling results, the updated resource estimate and whether the January PFS arrives with a development case capable of justifying the DFS spend.
Bottom Line?
The raise removes a near-term funding constraint, but the value of the new capital will depend on resource growth and a credible January PFS rather than cash on the balance sheet alone.
Questions in the middle?
- Will the 20,000-metre program materially expand or upgrade the reported resource base?
- Can Unico deliver the maiden PFS in January 2027 with sufficient technical and economic detail to support DFS spending?
- What contingent payment to Pan American Silver will be triggered when the maiden feasibility study is released?
