Mining Co. Expanding High-Grade Silver, Antimony Assets in Alaska

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Silver47 Exploration Corp. (AGA:TSX.V; AAGAF:OTCQB) announced it has increased the size of a non-brokered private placement from CA$8 million to CA$11 million and plans to close the third tranche of the offering on March 21.

Under the third tranche, the company said it will issue about 3,871,000 units at a price of CA$0.50 each for gross proceeds of CA$1.94 million. After the tranche, the company will have issued a total of 14.94 million units and 929,192 flow-through units (at CA$0.57 per flow-through unit) for total proceeds under the placement of CA$7,998,839.

Silver47 is a Vancouver, Canada-based precious, base, and critical metals explorer-developer. Its flagship Red Mountain is a volcanogenic massive sulfide (VMS) and sedimentary exhalative (SEDEX) project in southcentral Alaska.

Red Mountain's VMS-type deposit is one reason Silver47 should be on investors' watchlist, Richard Mills wrote in the March 8 edition of Ahead of the Herd. Highly desirable, VMS deposits are among the world's largest and richest sources of copper, zinc and lead plus gold and silver as byproducts, he explained.

As such, they are immensely scalable and typically offer high-grade, long-term production. Produced byproducts can boost miners' cash position so that the extra funds could cover some or even all mining costs. Further, VMS deposits offer a safeguard against fluctuating metals prices. When one metal's price drops below economic viability, the production profile is normalized through the polymetallic nature of these deposits.  

"VMS deposits have long been recognized, by both majors and juniors, as potential 'elephant' country," Mills wrote.

'One of the Highest Value Properties'

Red Mountain has a sizable silver resource with an NI 43-101 showing 15.6 million tonnes at 335.7 grams per tonne silver equivalent (g/t Ag Eq) totaling 168.6 million ounces (Moz) Ag Eq.

But another characteristic of VMS deposits is they often contain critical metals in trace amounts, and Red Mountain hosts known antimony, gallium, niobium and vanadium, highlighted Bob Moriarty of 321Gold. This makes the project even more attractive, he noted, particularly now, with the U.S. pushing for domestic production of these in-demand metals.

Red Mountain hosts known antimony, gallium, niobium and vanadium, highlighted Bob Moriarty of 321Gold. This makes the project even more attractive, he noted, particularly now, with the U.S. pushing for domestic production of these in-demand metals.

A review of historical and recent Red Mountain drill results revealed the highest grades to be 0.623% antimony, 116.4 g/t gallium, and 1,110 g/t vanadium in the Dry Creek zone, according to a news release.

The most significant interval from Dry Creek came from hole DC18-77, which was 6.8 meters (6.8m) of 2,928.4 ppm antimony, 81.7 ppm gallium, 938.7 grams per ton (938.7 g/t silver), 1.5 g/t gold, 3.5% zinc, 1.7% lead and 0.4% copper. This included 4.3m of 4,432.2 ppm antimony, 96.7 ppm gallium, 1,434.8 g/t silver, 2.2 g/t gold, 4.8% zinc, 2.3% lead and 0.5% copper.

"The Red Mountain deposit is one of the highest value properties, in terms of metal in the ground values, in the world," Moriarty wrote.

The prices of antimony and gallium, and other critical metals, have soared since early December, when China announced it no longer would export them to the U.S., noted Mills. As such, previously uneconomic amounts now may be economic.

"Silver47 was an interesting investment before the addition of more potential valuable elements in the mix," wrote Moriarty. " Essentially, you are buying silver equivalent ounces for CA$0.16 an ounce. I don't think it gets any better than that." 

Terms of Offering

Under the terms of the offering, each unit under the third tranche will consist of one common share in the capital of the company and one-half of one common share purchase warrant (with each full warrant being a "warrant"). Each warrant will entitle the holder to acquire one common share at CA$0.75 within 36 months following issuance.

The upsized offering is expected to close on or about April 2, 2025, the company said. The net proceeds from the sale of the units will be used to fund exploration activities at Red Mountain and for general working capital. Gross proceeds from the sale of flow-through units will be used for exploration expenditures at the company's Adams Plateau Project in British Columbia.

The Catalyst: Silver, Critical Metals Essential for New Economy

In addition to being a precious metal, silver is essential to the energy transition as it is the most conductive element in nature and is used to coat electrical contacts in computers, phones, cars, and appliances. It's also an important element in solar technology.

Chen Lin of What Is Chen Buying? What Is Chen Selling? told Streetwise Reports that he is especially bullish on silver as the second quarter starts. Adding to the mix is U.S. President Donald Trump's new tariffs against Canada and Mexico, both huge suppliers of the metals to the country.

"Whatever the outcome of the tariff chaos, it has added to the awakening of the silver bulls," Chen wrote in February in his newsletter. "The simple fact is that global consumption of it continues to exceed supply. Remember, while miners and recyclers can supply about a billion ounces of silver annually the current demand stands above 1.2 billion ounces. This fundamental supply-demand deficit can only increase silver's US$32 per ounce price, which is why I remain confident that it will continue to offer positive, long-term opportunities for investors. Gold may be the metal of kings, but silver remains the people's metal."

Mordor Intelligence noted that silver is expected to register a compound annual growth rate (CAGR) of more than 5% between 2024 and 2029.

The critical metal antimony may be a lesser-known mineral to many, but it has gained increasing attention due to its applications in defense, energy storage, and fire safety technologies. 

Its rising market has been attributed to tightening supply and heightened demand across multiple sectors, including clean energy technologies, lead-acid batteries, military applications, and flame retardants, according to a report by Investing News Network on January 2.

The critical role of antimony in fire retardants accounted for approximately 60% of annual demand, while its use in lead-acid batteries, solar panels, wind turbines, and ammunition.

Ownership and Share Structure

According to Refinitiv, Silver47's ownership breakdown is this: 29.51% held by six strategic entities, 9.17% owned by one institution and the rest in retail.

The Top 3 shareholders overall are the company's CEO Gary Thompson with 14.46%, Crescat Capital with 9.17% and Eric Sprott with 8.3%.

Silver47 has 50.04 million outstanding shares and 35.28 million free float traded shares. Its market cap is CA$32.53 million. Its 52-week high and low are CA$0.84 and CA$0.47 per share, respectively.