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• Capitan Silver announced a non-brokered private placement of up to $4.2M at a 31% premium to market.
• The placement is to be led by a new strategic investor (the Jupiter Gold and Silver Fund) which will result in it owning ~9.9% of the Company.
• Other strategic investors such as Michael Gentile & Construplan are also expected to participate in the financing.
• Proceeds will be used to fund exploration programs at the Cruz de Plata silver-gold project in Durango, Mexico.
This morning, Capitan Silver Corp. (CAPT:TSXV, CAPTF:OTC) announced a non-brokered private placement to raise up to $4.2M through the issuance of 10.5M units at a 31% premium to market price of $0.40/unit. Each unit comprises one common share and one warrant exercisable at $0.50 within 12 months. The warrant is also subject to potential acceleration and price adjustment terms, ensuring CAPT maintains its clean capital structure going forward. As part of the placement, CAPT announced the participation of Jupiter Gold and Silver Fund, resulting in a 9.9% ownership on an undiluted basis. We are maintaining our BUY rating and our $0.80/share target price on CAPT.
Strategic Investor
Today’s financing is led by Jupiter Asset Management’s, Gold and Silver Fund. Jupiter is a leading global asset management firm with an AUM of ~$90B. Its Gold and Silver Fund is known for key investments in mining companies in Mexico, having invested in MAG Silver ($2.3B mkt cap) and Silvercrest (recently acquired by Coeur for $1.7B). On closing Jupiter is expected to subscribe for 8,375,000 units and will thereby own ~9.9% of Capitan’s issued and outstanding shares on a diluted basis.
Key Highlights
• Premium Pricing: Units priced at a $0.40/unit representing a 31% premium to the previous trading day’s closing price on the TSX Venture.
• Warrant Early Exercise: Warrants may be subject to accelerated exercise upon the announcement of significant transactions at Cruz de Plata.
• Insider Participation: Existing shareholders, including Michael Gentile and Construplan, who previously owned 17% and 10% of CAPT respectively, are also expected to participate in this financing.
• Fully Funded for 2025: Proceeds will fund exploration at the Cruz de Plata Project.
• Warrant Exercise: If all warrants were to be exercised, it would result in an additional funding of up to $5.25M.
Our Take
Today’s announcement excites us for a few reasons; 1) CAPT was able to secure $4.2M of funding in an unfavourable market, and 2) CAPT was able to do it at a significant premium to market, signalling investor eagerness to get involved in the story. Beyond this, upon closing, CAPT will be fully funded to explore the high upside project through 2025, with potential further funding by way of warrant exercises.
CAPT: Receives Strategic Investment
What you need to know:• Capitan Silver announced a non-brokered private placement of up to $4.2M at a 31% premium to market.
• The placement is to be led by a new strategic investor (the Jupiter Gold and Silver Fund) which will result in it owning ~9.9% of the Company.
• Other strategic investors such as Michael Gentile & Construplan are also expected to participate in the financing.
• Proceeds will be used to fund exploration programs at the Cruz de Plata silver-gold project in Durango, Mexico.
This morning, Capitan Silver Corp. (CAPT:TSXV, CAPTF:OTC) announced a non-brokered private placement to raise up to $4.2M through the issuance of 10.5M units at a 31% premium to market price of $0.40/unit. Each unit comprises one common share and one warrant exercisable at $0.50 within 12 months. The warrant is also subject to potential acceleration and price adjustment terms, ensuring CAPT maintains its clean capital structure going forward. As part of the placement, CAPT announced the participation of Jupiter Gold and Silver Fund, resulting in a 9.9% ownership on an undiluted basis. We are maintaining our BUY rating and our $0.80/share target price on CAPT.
Strategic Investor
Today’s financing is led by Jupiter Asset Management’s, Gold and Silver Fund. Jupiter is a leading global asset management firm with an AUM of ~$90B. Its Gold and Silver Fund is known for key investments in mining companies in Mexico, having invested in MAG Silver ($2.3B mkt cap) and Silvercrest (recently acquired by Coeur for $1.7B). On closing Jupiter is expected to subscribe for 8,375,000 units and will thereby own ~9.9% of Capitan’s issued and outstanding shares on a diluted basis.
Key Highlights
• Premium Pricing: Units priced at a $0.40/unit representing a 31% premium to the previous trading day’s closing price on the TSX Venture.
• Warrant Early Exercise: Warrants may be subject to accelerated exercise upon the announcement of significant transactions at Cruz de Plata.
• Insider Participation: Existing shareholders, including Michael Gentile and Construplan, who previously owned 17% and 10% of CAPT respectively, are also expected to participate in this financing.
• Fully Funded for 2025: Proceeds will fund exploration at the Cruz de Plata Project.
• Warrant Exercise: If all warrants were to be exercised, it would result in an additional funding of up to $5.25M.
Our Take
Today’s announcement excites us for a few reasons; 1) CAPT was able to secure $4.2M of funding in an unfavourable market, and 2) CAPT was able to do it at a significant premium to market, signalling investor eagerness to get involved in the story. Beyond this, upon closing, CAPT will be fully funded to explore the high upside project through 2025, with potential further funding by way of warrant exercises.
Underlying
CAPITAN SILVER CORP
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Ben Pirie
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