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Aftermath Silver set for C$12.5M placing, with gold bull Eric Sprott investing over C$5.3M

The junior explorer said it would issue up to 19.25 million shares at C$0.65 each

Aftermath Silver -
The company intends to use the proceeds for drilling and other technical studies on the Berenguela Silver-Copper project in Peru, and the Challacollo and Cachinal Silver-Gold projects in Chile

Aftermath Silver Ltd (CVE:AAG) (OTCQB:AAGFF) is poised to bring in C$12.5 million via a private placing, with resource investor and gold bull Eric Sprott investing over C$5.3 million.

In a brief statement, the junior explorer said it would issue up to 19.25 million shares at C$0.65 each.

READ: Aftermath Silver inks deal to acquire Berenguela silver-copper project in Peru from SSR Mining

"The company intends to use the net proceeds for drilling and other technical studies on the Berenguela Silver-Copper project in Peru, and the Challacollo and Cachinal Silver-Gold projects in Chile, and for general working capital purposes," the company said.

Sprott has agreed to invest C$5,351,022 in the private placement, the firm added, buying over 8.2 million shares.

Assuming the placing is fully subscribed, this investment would mean Sprott would hold around 19.9% of Aftermath's shares on closing.

At the end of July, Aftermath revealed it had inked a binding letter of intent with SSR Mining to buy the Berenguela silver-copper project in Puno, Peru.

It will buy the Peruvian holding company Sociedad Minera Berenguela SA for nearly US$13 million in staged cash payments, an investment in Aftermath shares and net smelter return royalties.

Aftermath said the Berenguela silver–copper project is an epithermal polymetallic carbonate-replacement deposit with a total tenement package of 6,594 hectares.

Contact the author at [email protected]

Quick facts: Aftermath Silver

Price: 0.86 CAD

TSX-V:AAG
Market: TSX-V
Market Cap: $100.44 m
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