Silver Mines Ltd (ASX:SVL) received firm commitments totalling $2.25 million through a share placement plan to fund the initial deposit of $1.8 million to be paid to Kingsgate Consolidated Ltd (ASX:KCN) for acquiring the Bowdens Silver Project in Lue, New South Wales.
The shares are to be placed at a price of $0.0015 with a 1 for 2 free attaching $0.003 option. The placement is lead managed by DJ Carmichael and supported by natural resources focused institutions and high net worth individuals.
SVL had announced on 3 March 2016 that it had entered into a heads of agreement to acquire an unlisted company which in turn has an agreement with Kingsgate to acquire 85% of the Bowdens Silver Project.
Successful completion of the Bowdens Silver Project acquisition would make SVL the largest pure play silver company on the Australian Securities Exchange.
A deposit of $1.8 million for the Bowdens acquisition is to be paid on or before 30 March 2016.
Remaining payment required to complete the acquisition will be raised by SVL using financing arrangements to be confirmed in April 2016.
Full settlement of the transaction to be done prior to 30 June 2016.
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