Andean Silver (ASX: ASL) has received strong support for a $30 million placement to accelerate exploration at its Cerro Bayo silver-gold project in Chile.
The placement was priced at A$1.85 per share, representing an 11.5% discount to the last sale price of A$2.09 and a 3.9% discount to the 10-day volume-weighted average price of A$1.93.
Andean will also undertake a $3m share purchase plan (SPP) that will allow shareholders to purchase up to $30,000 worth of shares at the same issue price as the placement.
Funds raised will support the company's aggressive drilling plans for Cerro Bayo as it continues resource growth and conversion activities.
Major Expansion Success
Over the 18 months since the acquisition of Cerro Bayo, Andean has increased the global mineral resources by over 340%, discovered multiple new vein systems, and created a project exploration pipeline to underpin long-term growth.
A resource expansion program is currently in progress at Cerro Bayo, looking to upgrade resources to the Measured and Indicated categories.
Cerro Bayo’s global project mineral resource is currently 9.8 million tonnes at 351 grams per tonne for 111 million ounces silver equivalent.
Earlier this month, the company announced it had discovered more extensive vein systems with high-grade mineralisation at the project.
Recent sampling in the Cerro Bayo district extended several mineralised vein corridors by approximately 1km, with a corridor continuing for 1.3km under shallow cover between the Droughtmaster and Guanaco mines and the potential for further prospective zones.
Potential Land Acquisitions
Chief executive officer Tim Laneyrie said the capital raised would help Andean complete permitting for new drilling areas, as well as accelerate project studies and identity potential new land acquisitions in nearby areas.
“We have an abundance of opportunities to drive growth and value creation [and] are on track to deliver a resource upgrade in the new year," Mr Laneyrie said.
“Andean is uniquely placed in the silver market with its significant existing infrastructure that will help deliver a capital-light restart in the quickest and most efficient manner.”
“Being well supported and funded by shareholders will enable that groundwork to occur during 2026."
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