LatAm mining financing deals reach US$480mn

Latin America-focused mining companies saw a surge in financing activity in February, with a flurry of deals targeting lithium, gold and silver projects.

Firms advanced 26 financing deals worth an aggregate US$480mn, compared to 17 deals and US$335mn in January, according to industry data compiled by BNamericas.

The deals include share offerings, loans and the exercise of warrants. Financings worth less than US$1.5mn were excluded.

TOP TARGETS

By value, primary silver projects attracted the most, with five deals worth US$194mn progressing in the month.

Primary gold assets attracted US$121mn in seven deals, followed by lithium (seven deals, worth US$109mn).

The remaining financings were spread across copper, platinum and uranium projects.

More than half the US$480mn total was aimed at Mexican assets (six deals worth US$280mn), followed by Argentina (US$88.6mn across seven financings), Brazil (three deals, US$42.8mn) and Chile (two deals worth US$26.7mn).

The other deals targeted assets in Colombia, Peru, Nicaragua, Ecuador and Bolivia.

TOP FEBRUARY FINANCING DEALS

1. SilverCrest Metals: US$138mn

Target: Las Chispas silver-gold project, Mexico

SilverCrest topped the list of biggest financings for the second month running, raising US$138mn in a prospectus offering on February 22.

The cash, which will be used for further exploration and mine and plant design optimization at the Las Chispas project, included US$18.0mn in a fully-exercised over-allotment option.

The company secured a US$120mn project financing facility for the project in January.

2. Osisko Development: Cdn$80mn (US$63mn)

Targets: Canadian and Mexican gold projects

Osisko Development closed the final tranche of a non-brokered private placement on February 5, for gross proceeds of Cdn$80mn.

Proceeds are earmarked for developing the Cariboo gold project in Canada and advancing the San Antonio gold project in Mexico toward production.

3. Sigma Lithium: Cdn$42mn

Target: Grota do Cirilo lithium project, Brazil

Sigma closed an upsized private placement on February 22 for gross proceeds of Cdn$42mn, up from Cdn$30mn originally planned.

Funds will be used for a feasibility study and permitting for phase 2 of the Grota do Cirilo lithium project, and exploration for a third phase development.

The additional funds raised will boost financial flexibility during construction of the first phase of the project.

4. Millennial Lithium: Cdn$34.5mn

Targets: Lithium projects in Argentina

Millennial Lithium closed its Cdn$34.5mn bought deal financing on February 11, which will be used for development activities at the company’s lithium projects in Argentina.

Millennial has the Pastos Grandes and Cauchari East lithium assets in the country.

5. Telson Mining: US$25mn

Target: Tahuehueto primary gold project, Mexico

Telson Mining reported a US$25mn financing deal with Accendo Banco, Empress Royalty and Endeavour Financial, to fund construction and ramp-up of Telson’s Tahuehueto gold project.

6. Discovery Metals: Cdn$31mn

Target: Cordero silver project, Mexico

Discovery Metals received Cdn$31mn as share purchase warrants were exercised prior to their expiry on February 17, bringing the company’s cash balance to around Cdn$98mn.

The company is in a strong position to quickly advance its Cordero silver project in Mexico, one of the world’s largest undeveloped silver assets, CEO Taj Singh said.

7. Marimaca Copper: Cdn$30.9mn

Target: Marimaca copper project, Chile

Marimaca announced plans to raise Cdn$30.9mn in a non-brokered private placement on February 22.

Proceeds will be used to advance the Marimaca copper project in Chile, and for wider exploration activities and general corporate purposes.