Silver Storm Mining Ltd. Closes $3.87M Private Placement Tranche

Silver Storm Mining Ltd. [SVRS-TSXV, SVRSF-OTCQB, SVR-FSE] said it has closed the first tranche of its non-brokered private placement for total proceeds of $3.87 million. Under the offering, the company sold 29.8 million units priced at 13 cents per unit.

Each unit consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share for 20 cents at any time on or before that date which is 36 months from the date of issuance.

In a press release on June 27, 2025, the company said it had decided to increase the size of a previously announced non-brokered private placement to $4.0 million (gross proceeds) from the previous $2.6 million target.

Silver Storm shares were unchanged Thursday at 12.5 cents and currently trade in a 52-week range of 17.5 cents and $0.07.

Silver Storm holds advanced stage projects located in Durango, Mexico.

Back in 2023, Silver Storm completed the acquisition of a 100% interest in the La Parrilla Silver Mine Complex, a prolific operation which consists of a 2,000 tonne-per-day mill as well as five underground mines and an open pit that collectively produced 34.2 million silver equivalent ounces between 2005 and 2019. These assets are located 76 kilometres southeast of Durangos capital.

When placed on care and maintenance in September, 2019, La Parrilla was a fully-permitted mine complex.

Silver Storm acquired the asset from First Majestic Silver Corp. [FR-TSX, AG-NYSE, FMV-Frankfurt], a company that currently ranks as Silver Storms largest shareholder. Silver Storms other key shareholders include financier Eric Sprott, who currently owns a 10.5% stake in the company on a non-diluted basis.

The property was acquired by First Majestic in 2004 and became its first silver mine in 2005.

Silver Storm has previously said its short-term objective is to commence exploration within and near-mine workings in order to expand the resource base, to support our ultimate goal and vision of placing the asset back into production.

In its latest press release, Silver Storm said it intends to use net proceeds of the offering for the procurement of mine processing flotation cells, to commence rehabilitation work at the La Parrilla processing facility including equipment purchase and refurbishment, labour and supplies.

Part of the proceeds will also be used to order long lead items, including deposits on mining equipment and ventilation fans, and to fund ongoing operations for the next 12 months.

Aside from La Parrilla, Silver Storm also holds a 100% interest in the San Diego project, which ranks among the largest undeveloped silver assets in Mexico.