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Sprott backs upsized Aftermath Silver raising

Billionaire investor Eric Sprott has agreed to boost his investment in Aftermath Silver’s upsized C$15.6 million raising, to hold 19.9% of the buoyant junior.
Sprott backs upsized Aftermath Silver raising Sprott backs upsized Aftermath Silver raising Sprott backs upsized Aftermath Silver raising Sprott backs upsized Aftermath Silver raising Sprott backs upsized Aftermath Silver raising

Aftermath Silver’s Challacollo project in Chile

Staff reporter

Aftermath had said on Thursday Sprott had agreed to invest $5.3 million in its $12.5 million placement priced at 65c per share, which would give him 19.9%.

A day later, Aftermath said it was increasing the placement to $15.6 million and said Sprott would also increase his investment, in order to hold 19.9% of the issued and outstanding shares post-closing.

He had held 16.2% at July 13, according to a recent presentation.

Aftermath last raised $1.5 million in May at 20c per unit.

Its share price (TSXV: AAG) has soared from circa 20c in early May to a one-year high of 95c earlier this month.

The silver price has been on the rise and is up about 70% over the past six months to more than US$28 an ounce on the spot market.

The company intends to use the net proceeds from the upsized placement for exploration at the Berenguela silver-copper project in Peru, and the Challacollo and Cachinal silver-gold projects in Chile, plus for general working capital and business development.

Aftermath had announced "transformative" plans to acquire Berenguela in July from SSR Mining, for staged payments totalling US$13 million, C$3 million in shares and a sliding scale NSR royalty. 

CEO Ralph Rushton recently told Mining Journal he believed the company would jump into the bracket of advanced silver explorers once it updated Berenguela's existing resource. 

 

Aftermath closed up 7.5% on Friday to 86c to capitalise it about $83 million (US$63.4 million).