en.Wedoany.com Reported - Silver Mines has secured A$7.56 million in definitive funding through the exercise of fully underwritten options, with the proceeds to be used to advance its flagship Bowdens silver project in New South Wales.

Under the agreement, investment bank Petra Capital has committed to underwrite up to 63.18 million unlisted SVLAZ options that remain unexercised by the expiry date of June 17.

This means Silver Mines (ASX: SVL) could receive approximately A$7.56 million from the exercise of options by holders; if there is a shortfall in subscriptions, Petra Capital will purchase the remaining portion.

The company expects to issue 63.18 million new shares and complete the funding by June 25, thereby providing financial support for the Bowdens project as it enters a critical development phase.

The underwriting agreement was signed several weeks after Silver Mines spent A$12.5 million to acquire adjacent freehold land and associated water rights, expanding the Bowdens project footprint. The acquisition increased the company's freehold land holdings to approximately 3,345 hectares, covering virtually the entire project area, and enhanced both water security and development flexibility.

The acquisition was funded from the company's existing cash reserves, while the underwritten option exercise has replenished most of the funding requirements, supporting the balance sheet as Silver Mines advances the Bowdens project through key milestones.

Silver Mines is nearing completion of the Bowdens Definitive Feasibility Study (DFS), expected to be finalized around mid-year. The DFS builds on an optimization study that identified 71.5 million ounces of silver reserves at the project. Updated data from December 2024 shows the project's silver resource stands at 180 million ounces, of which 164 million ounces (91%) fall into the higher-confidence measured and indicated resource categories, making Bowdens Australia's largest undeveloped silver deposit and one of the largest of its kind globally.

The company is also continuing work related to the re-determination of project development approvals, following further clarification from the New South Wales government late last year on the approval pathway. Given the rising demand for silver from solar cells, electrification, and advanced technologies such as artificial intelligence and data centers, the project aligns closely with New South Wales' Critical Minerals and High-Tech Metals Strategy for 2024–35. These factors underpin medium- to long-term forecasts of a silver supply deficit, with impacts extending beyond short-term shocks to precious metals during the Iran war.

Managing Director Jo Battershill said the company is pleased to have secured Petra Capital's support through this underwriting agreement, which strengthens confidence in the Bowdens project and the overall development strategy. The funds raised bolster the balance sheet at a significant stage as the company completes the DFS and continues to advance the development approval pathway. The company thanks Petra Capital for its support and looks forward to achieving the next milestones at Bowdens and other assets in the portfolio.

Silver Mines is also advancing its U.S. asset portfolio. Exploration at Calico North has yielded encouraging silver and barite results, both of which are classified as critical minerals in the United States. The company plans to drill at the Kramer Hills gold project in California later this year, while in New South Wales, it has secured exploration access to the Rockwell silver prospect near Bowdens.

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