AbraSilver Resource Corp. (ABRA:TSX.V; ABBRF:OTCQX) has secured CA$48.4 million in financing through a combination of a bought deal public offering and a concurrent private placement. The financing consists of a CA$21.8 million bought deal offering led by National Bank Financial Inc. and Beacon Securities Limited and a CA$26.6 million private placement with participation from Kinross Gold Corporation and Central Puerto SA.
Under the bought deal agreement, the underwriters will purchase 10,231,000 common shares of AbraSilver at CA$2.55 per share, generating gross proceeds of CA$26,089,050. The underwriters also have the option to acquire up to an additional 15% of the issued shares within 30 days of closing. The offering is expected to close on or around February 7, 2025, subject to regulatory approvals.
The concurrent private placement will see Central Puerto purchase 9,701,157 common shares, increasing its ownership to approximately 9.9% of AbraSilver's outstanding shares. Kinross Gold retains the right to maintain its current position in the company through additional participation in the placement. Shares issued through the private placement will be subject to a four-month holding period.
AbraSilver's CEO, John Miniotis, stated in the news release, "We are truly delighted to announce this CA$48.4 million financing, providing us with immense financial flexibility to accelerate the development of our Diablillos project and continue unlocking its full potential." The proceeds will be allocated toward advancing the company's 100%-owned Diablillos silver-gold project in Argentina's Salta province and for general corporate purposes.
Silver Sector: Strong Industrial Demand and Market Dynamics Drive Momentum
Crux Investor wrote on January 10 that silver was benefiting from record industrial demand, particularly in clean energy technologies such as solar panels, electric vehicles, and electronics. Michael DiRienzo, Chief Executive of the Silver Institute, commented that "the electrification of the world is really providing a boon to silver." The report also discussed the stagnant supply of silver, noting that despite strong demand, global mine output had remained largely unchanged for years. "The easy high-quality silver deposits on the surface have by and large already been exploited," Steve Schoffstall, Director of ETF Product Management at Sprott, was quoted as saying. With inventories declining and supply struggling to keep pace, Crux Investor suggested that silver's role in both industrial applications and as a monetary asset could continue driving investment interest.
On January 22, FX Empire examined silver's price performance in relation to gold, noting that while silver remained in an upward trend, it had not matched gold's recent momentum. The report described silver as "holding above key levels," such as US$30.04 and US$30.53, but noted that a lack of significant inflows suggested hesitation among traders. The analysis also pointed to concerns over demand from China, the world's largest silver consumer, and uncertainty surrounding U.S. policies on renewable energy. "With U.S. President Trump considering policies that could limit funding for renewable energy projects, such as solar, traders are wary of disruptions to one of silver's fastest-growing demand sectors," it stated.
Kitco wrote on January 23 that silver was positioned to lead the metals sector in 2025, with StoneX analysts forecasting a 14% annual gain. The report attributed silver's strong outlook to its dual role as both a precious and industrial metal, stating that "even after its strong performance in 2024 (+22%), silver, the precious-industrial hybrid, is expected to collect the laurels in 2025 as the market's tightening fundamentals and strong future prospects, which have already enticed investors, continue to capture the imagination." Analysts highlighted silver's increasing role in the solar industry, where it remains a crucial component in photovoltaic cells. "From late 2024, however, the fundamental balance moves into a deficit that will expand substantially over the next few years on the back of solar, AI, and transport electrification," the report explained.
According to a January 27 report from Zero Hedge, technical indicators suggested that silver was forming a textbook Cup & Handle price pattern, a historically reliable bullish setup in financial markets. The analysis noted that "silver has a long way to go just to test the brim of the cup," with a breakout over US$50 per ounce seen as a critical level that could lead to further price surges. The report also pointed to potential supply constraints, particularly at COMEX, which fulfills delivery obligations for silver futures contracts. "Once we have reached a point where the supply runs out, the global exchanges will have to, as some say, ‘beg, borrow, or steal' the silver bars to meet their delivery obligations," it stated, suggesting that any shortage could trigger significant price movements.
Grey Rabbit Finance reported on January 31 that U.S. tariffs on Chinese solar panels, EVs, and semiconductors had the potential to accelerate a silver short squeeze by increasing domestic demand while simultaneously disrupting global supply chains. "Imagine it's 2025: US solar factories are humming, but they can't source enough silver. Prices hit US$50/oz, hedge funds scramble to cover shorts, and the COMEX threatens delivery defaults," the report stated. Analysts pointed to silver's growing industrial reliance, with over 50% of demand coming from green technology and electronics and a structural deficit projected to reach 265 million ounces annually through 2025. The report warned that if China, which refines half of the world's silver supply, retaliated with export restrictions, prices could spiral. "The last squeeze was a dress rehearsal. This time, fundamentals are in the driver's seat," metals analyst David Morgan was quoted as saying.
On January 30, Peter Krauth of The Silver Stock Investor commented on ABRA's January 27 drill results. He wrote, "These results are strong, especially in gold and copper. Shares were down about 8% on the news, but it's still early. Though not my focus since the silver intercepts are low, it's still interesting in that it adds value to the company, potentially a lot of value. That's why Kinross and Central Puerto contributed $20M last year. Argentina is rocking thanks in large part as well to its President Milei. I see this weakness as an opportunity to add."
Strategic Funding Positions AbraSilver for Growth and Key Development Milestones
AbraSilver's Diablillos project continues to demonstrate strong growth potential, with a recently updated pre-feasibility study highlighting a net present value (NPV) of CA$747 million at a 5% discount rate and an internal rate of return (IRR) of 28%. The mine plan estimates an average annual production of 13.4 million silver-equivalent ounces, with an all-in sustaining cost of CA$12.67 per ounce.
The company's exploration strategy remains focused on high-grade targets, including the recently identified JAC target, which contributed to a 20% increase in measured and indicated resources compared to previous estimates. Additionally, AbraSilver has commenced a 20,000-meter drilling program aimed at expanding the high-grade zones surrounding the Oculto deposit.
With the newly secured financing, AbraSilver is positioned to advance key milestones, including further resource expansion, feasibility study completion, and the initiation of permitting processes required for a construction decision by late 2026. The company also stands to benefit from Argentina's mining incentive program (RIGI), which could result in tax savings and reduced capital costs if requirements are met.
Streetwise Ownership Overview*
AbraSilver Resource Corp. (ABRA: TSX.V;ABBRF:OTCQX)
The strategic investment from Kinross Gold and Central Puerto further validates the project's potential, ensuring AbraSilver maintains financial stability while advancing Diablillos toward production.
Ownership and Share Structure
According to Refinitiv, the top six strategic entities own 21% of AbraSilver. The top three shareholders are: Eric Sprott with 9.9%, Kinross Gold with 4%, and Central Puerto with 4%.
Additionally, the top three insiders are CEO Miniotis with 1%, Director Hernan Zaballa with 0.83%, and Chairman and Director Robert Bruggeman with 0.86%.
Nine institutions hold 6.84% or 8.58 million shares. The Top Three are Mirae Asset Global Investments (USA) LLC with 2.1%, ETF Managers Group LLC with 1.74%, and Sprott Asset Management LP with 1.2%.
The company has 129.51 million outstanding shares. Its market cap is CA$333.5 million. Its 52-week high and low are CA$3.58 and CA$1.30 per share, respectively.
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- AbraSilver Resource Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
- James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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