Sun Silver eyes ASX debut with $10m IPO to advance Maverick Springs silver-gold project
Newcomer Sun Silver is planning to lodge a prospectus in the coming weeks with a view to list on the ASX.
The company will seek to raise a minimum of $10 million at $0.20 per share in an initial public offering, with the potential to accept oversubscriptions up to $3m.
Sun Silver is hoping to list in late May/early June.
The company owns the Maverick Springs silver-gold project in Nevada, which has a resource of 292 million ounces of silver equivalent at 72.4 grams per tonne silver.
The project sits in the famous Carlin Trend, about 85 kilometres from Elko.
Under-explored area
Sun Silver executive director Gerard O’Donovan told the Resources Rising Stars Gather Round conference in Adelaide today that no work had been carried out on the project in 15 years.
“We’re going to be the first group to get back in there and re-test and optimise and add value,” he said.
200 holes covering approximately 60,000m have been drilled at Maverick Springs but 80% of the project remains unexplored.
Sun Silver’s focus will be on rapid resource expansion as the deposit remains open along strike and at depth.
“We’re really excited about the ability to add ounces to this current resource,” Mr O’Donovan said.
Silver market strength
The spot silver price hit a two-year high of more than US$27/oz this week.
“What a fantastic time to be in silver,” Mr O’Donovan said.
Industrial demand for silver is “skyrocketing” and has risen by 330% over the past decade.
“Based on current projections, we expect that to continue,” Mr O’Donovan added.
Chinese tariff
Around 23% of the material cost of a solar panel is silver.
The US is considering imposing a 25% tariff on Chinese solar panel imports, which Mr O’Donovan said would make potential domestic sources like Maverick Springs more critical.
The global silver market has been in a deficit for the past four years.
According to Mr O’Donovan, 98% of the world’s silver reserves will be depleted by 2050 if silver demand continues to grow at the same rate.
“Silver is in a fantastic position,” he said.
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