07:40 AM EDT, 07/18/2025 (MT Newswires) -- Silver Mountain Resources ( AGMWF ) after markets closed on Thursday said it entered into an agreement with Velocity Capital Partners, on behalf of a syndicate of underwriters, under which the underwriters will buy, on a "bought deal" basis, units of the company for gross proceeds of approximately $15 million.

The company will sell 11.54 million units at $1.30 each. Each unit will be made up of one common share in the capital of the company and one-half of one common share purchase warrant. Each warrant will allow the holder to buy one common share at $1.70 for 24 months following the completion of the offering.

Silver Mountain Resources ( AGMWF ) said it granted the underwriters an option, exercisable in whole or in part, to purchase up to an additional 1.73 million units for a period of 30 days from and including the closing date to cover over-allotments, if any, and for market stabilization purposes.

The company plans to use the net proceeds from the offering to further develop the Reliquias mine, Caudalosa plant and related facilities, and for working capital and general corporate purposes.

The offering is expected to close on or about July 29 and is subject to certain conditions.