Silver Tiger Secures C$28.8 Million to Advance El Tigre Mine Development

• Silver Tiger Metals Inc closed a bought deal financing of C$28,773,000 through the sale of 39,962,500 common shares at C$0.72 per share.
• The underwriting syndicate was led by Stifel Nicolaus Canada as sole bookrunner and Desjardins Capital Markets as co-lead underwriter, with BMO Capital Markets and Ventum Financial participating.
• Proceeds will fund exploration and development expenditures at the El Tigre Project in Sonora, Mexico, as well as working capital and general corporate purposes.
• The October 2024 pre-feasibility study reports an after-tax net present value of US$222 million at a 5% discount rate, an after-tax internal rate of return of 40%, and a payback period of 2 years.
• The project has a projected 10-year mine life with all-in sustaining costs of US$1,214 per gold equivalent ounce and US$14 per silver equivalent ounce.

Silver Tiger Metals Inc (TSXV: SLVR, OTC: SLVTF) is a Canadian company with management experience spanning over 27 years in discovering, financing, and building hydrothermal gold and silver mines in Mexico. The company owns 100% of the 28,414-hectare El Tigre Historic Mine District in Sonora, Mexico. Silver Tiger began work at El Tigre in 2017 and has since drilled over 150,000 metres, with 119,000 metres completed since 2020. The company has published mineral resource estimates in 2017, 2023, and 2024, released a preliminary economic assessment in November 2023, and completed a pre-feasibility study in October 2024.

Bought Deal Financing Completion and Underwriter Syndicate Structure

The financing was structured as a bought deal in which the underwriters purchased 39,962,500 shares from Silver Tiger at C$0.72 per share for gross proceeds of C$28,773,000. The underwriting syndicate consisted of Stifel Nicolaus Canada as sole bookrunner, Desjardins Capital Markets as co-lead underwriter, and BMO Capital Markets and Ventum Financial as additional underwriters.

The underwriters received a 6% cash commission on gross proceeds, with exceptions for certain orders arranged by the company. Up to C$3 million of proceeds were subject to a reduced commission rate of 3%, and up to C$2 million were subject to a 5% commission rate. These reduced rates applied to orders that Silver Tiger arranged directly.

The offering was completed through a short-form prospectus in all Canadian provinces except Quebec. The securities were also offered outside Canada in accordance with applicable securities laws.

Use of Proceeds for El Tigre Project Exploration and Development

The company intends to use the proceeds to fund exploration and development expenditures at the El Tigre Project in Mexico, as well as working capital and general corporate purposes. Silver Tiger has completed over 150,000 metres of drilling at El Tigre since commencing work in 2017, with 119,000 metres drilled since 2020.

The company has published several mineral resource estimates, beginning with an initial estimate in 2017 and subsequent updates in 2023 and 2024. A preliminary economic assessment for the El Tigre open pit was released in November 2023. The October 2024 pre-feasibility study represents the most recent technical and economic evaluation of the project.

The El Tigre Project is located in Sonora, Mexico, within a historic mining district. The company's work programme has focused on understanding the mineral potential of the property through systematic drilling and resource estimation.

El Tigre Project Pre-Feasibility Study Economics and Production Outlook

The October 2024 pre-feasibility study for the El Tigre open pit reports an after-tax net present value of US$222 million at a 5% discount rate and an after-tax internal rate of return of 40%. The study indicates a payback period of 2 years for the project, which is planned for a 10-year mine life.

Initial capital costs are estimated at US$86.8 million, including US$9.3 million in contingency. Operating cash costs are projected at US$973 per gold equivalent ounce and US$12 per silver equivalent ounce. All-in sustaining costs are estimated at US$1,214 per gold equivalent ounce and US$14 per silver equivalent ounce.

The study projects a life of mine undiscounted after-tax cash flow of US$318 million. The economic evaluation is based on a silver price of US$26 per ounce and a gold price of US$2,150 per ounce.

Looking Ahead

With the financing completed, Silver Tiger will proceed with exploration and development activities at the El Tigre Project. The company has completed multiple phases of drilling and resource estimation since 2017, progressing from an initial mineral resource estimate to a pre-feasibility study in October 2024. The next steps typically involve advancing technical work, permitting, and further engineering studies as the project moves through the development pipeline.

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