Australia’s Silver Mines , owner of the largest undeveloped silver deposit in the country, has secured A$30.2 million in funding from an investment firm led by Harry Lundin,The investment firm, Bromma Asset Management, will purchase debentures with face values of A$1,000 and a 48-month maturity, bearing interest at 10% per annum. The debentures can be converted into Silver Mines’ shares at A$0.22 per share, a 33% premium over its last trading price.
The polymetallic project hosts the largest known undeveloped silver resource in Australia, with 128 million tonnes grading 40 grams per tonne silver for 163 million oz. of silver , according to a 2017 estimate. An initial reserve base of 29.9 million tonnes at 69 g/t silver was subsequently calculated.
Due to higher silver grades in the early stages of mining, average production during the first three years of operation will be approximately 5.4 million oz. of silver per annum, plus 6,000 tonnes of zinc and 5,200 tonnes of lead, the company said.