Bear Creek Mining is raising $30 million in a bought-deal financing led by Stifel GMP. The net proceeds of the offering are expected to be used for ongoing development work at the company’s flagship Corani silver-lead-zinc project in southern Peru and for corporate purposes.
As part of the offering, the underwriters will purchase, on a bought-deal basis, 10 million shares of the company at $3 each, for aggregate proceeds of $30 million. The underwriters also have the option to purchase up to an additional 1.5 million shares up to 30 days after closing, for up to an additional $4.5 million in gross proceeds.
Closing is expected around Jan. 15.
In November 2019, Bear Creek released an updated feasibility study for a potential 27,000 t/d open-pit operation, extracting ore from the Este, Minas and Main pits. The study envisioned a mine that would produce an average of 9.6 million oz. of silver, 98 million lb. of lead and 69 million lb. of zinc annually over a 15-year life. With life-of-mine all-in sustaining costs of US$4.55 per oz. of silver produced and US$579 million in initial capital, the associated project’s net present value estimate, at an 8% discount rate, comes in at US$369 million, based on US$18 per oz. silver, US$1.1 per lb. zinc and US$95¢ per lb. lead.
For more information, visit www.BearCreekMining.com.