Unico Silver raises $5m to fast-track exploration at Argentine silver-gold targets
Unico Silver’s Pinguino and Conserrat assets will now be known as the Cerro Leon project.
Formerly E2 Metals, the renamed Unico Silver (ASX: USL) has successfully raised $5 million to accelerate growth of its Pinguino and Conserrat projects in Argentina, and has launched a $1 million share purchase plan.
The company rebranded to Unico Silver after it completed its acquisition of the Pinguino project in March.
Pinguino hosts one of the largest undeveloped silver-gold resources in Santa Cruz and is only 15km north of Unico’s Conserrat silver-gold asset.
Following the acquisition, Unico has combined both assets, which are now known as the the Cerro Leon project.
Accelerated exploration
The company has received binding commitments for a placement to raise $5 million at $0.135 per share – representing a 20% discount to its last traded price of $0.17.
Unico managing director Todd Williams said the company is “delighted” with the outcome of the capital raising, which is supported by new and existing shareholders.
Additionally, Unico is undertaking a share purchase plan to raise an extra $1 million under the same terms as the placement.
The company expects to have about $6 million (before costs) to accelerate exploration and development of the Cerro Leon resource.
As part of this, a maiden resource will be released for Conserrat in May, while Pinguino’s foreign estimate will be converted to the JORC code.
Funds will also underpin ongoing exploration and possible “further regional consolidation”.
“With spot silver prices moving higher, Unico is well-placed as a new and exciting pure play silver developer listed on the ASX, with a large foothold in a world-class precious metal province and an updated resource due next month, which will serve as a platform for further exploration success and regional consolidation,” Mr Williams said.
“The company is now fully funded to execute on the next phase of growth.”
Pinguino
Pinguino has a foreign resource of 82 million ounces of silver equivalent and is only 35km from AngloGold Ashanti’s (ASX: AGG) Cerro Vanguardia mine.
The project is the second largest known vein field in Santa Cruz and hosts 115km of underexplored cumulative strike.