Silver Mines raises slab of cash as Bowdens approval awaited

SILVER Mines has raised A$30 million as it awaits development approval for its plus-50 million ounce Bowdens silver-zinc-lead operation in New South Wales.
Silver Mines raises slab of cash as Bowdens approval awaited Silver Mines raises slab of cash as Bowdens approval awaited Silver Mines raises slab of cash as Bowdens approval awaited Silver Mines raises slab of cash as Bowdens approval awaited Silver Mines raises slab of cash as Bowdens approval awaited

Silver Mines country, NSW

The raising is priced at 22c per share, with the stock generally trading this year in the 25-28c range, up from levels around 7-8c 12 months ago. 

Silver Mines says Bowdens has "outstanding support locally", with the development set to cost $250 million to bring into production and be capable of generating earnings (EBITDA) averaging $116.5 million per annum in the first three years. 

Bowdens has a post-tax net present value of $192 million and internal rate of return of 24%. 

The modelled 16.5-year project will produce a total of 53Moz of silver, 108,000t of zinc and 79,300t of lead, with all-in sustaining costs for the silver put at $17.53/oz. 

Silver Mines is currently drilling high-grade prospects at Bowdens, and awaiting drill assays from a gold exploration project within an historical gold field near the town of Blayney.  

The company started the year with about $3.6 million cash and has about $7 million in options expiring later this year that are ‘well-in-the-money'. 

Shares in Silver MInes were down 9% to 25c in morning trade, capitalising the company at $260 million.