Arian Silver (LON:AGQ) has secured up to £5 million in additional funding over the next three years as it tied up a equity line facility with Yorkville.
The AIM quoted miner will be able to sell new shares to Yorkville’s YA Global Fund at a 5 per cent discount to the prevailing market price (established over a 5 to 20 day ‘pricing period’).
"This facility ensures the company is fully funded to execute Arian's short-term strategy, which includes initiating the phase 5 drilling programme,” said chief executive Jim Williams.
“The facility provides access to working capital in a manner that minimises potential dilution whilst we conclude the milling and mining studies.
“The studies are progressing well and I look forward to being able to provide an update soon."
Last month Arian, which currently produces silver from a mine in Mexico’s Zacatecas state, posted revenues of $2.1 million in its second quarter - a 38 per cent increase on the same period in the prior year.
The company is working towards the further development of the San Jose mine and to also build its own processing mill as it currently uses a contractor. The switch would allow for a larger scale and more efficient operation.