Silver North/SNAG

Silver North Resources Ltd. (SNAG:TSX.V; TARSF: OTCQB) announced its non-brokered private placement has been fully subscribed and will close shortly.

The offering includes flow-through units (FT units) priced at CA$0.21 each, aiming to raise up to CA$2.1 million. Each FT unit consists of one common share and half of a common share purchase warrant, with each full warrant enabling the purchase of one common share at CA$0.35 for 48 months post-issue. These shares will qualify as flow-through shares under subsection 66(15) of the Income Tax Act (Canada).

In a strategic move, some purchasers plan to donate their FT units to registered charities or sell them to third-party investors. Additionally, Silver North is planning a separate non-brokered private placement of non-flow-through units (HD units) to raise up to an additional CA$500,000 due to increased investment interest.

These HD units are priced at CA$0.15 each, comprising one common share and half of a common share purchase warrant, with each full warrant entitling the holder to purchase one common share at CA$0.35 for 48 months.

The proceeds from the FT units will fund exploration and related activities at Silver North's Haldane and GDR mineral properties in Yukon. The HD unit proceeds are earmarked for general and administrative expenses and project pipeline development.

The completion of these offerings is contingent upon receiving all necessary regulatory approvals, including from the TSX-V.

The FT units are being offered through an arrangement with PearTree Securities Inc., and in compliance with National Instrument 45-106, Prospectus Exemptions, they are available to Canadian residents and other qualifying jurisdictions without a hold period under Canadian securities laws. An offering document is available on SEDAR+ and should be reviewed by prospective investors before making any investment decisions. The securities issued in the HD unit offering and the finder's warrants will be subject to a standard four-month and one-day hold period under applicable securities laws.

The funds from the FT unit offering will specifically support exploration efforts at the company's Haldane and GDR projects in Yukon, including a prospecting, sampling, and mapping program at the Veronica claim block of the GDR project and a 10-hole, 2,500-meter diamond drilling program at Haldane. This drilling will target the expansion of Keno-style silver-lead-zinc mineralization discovered in 2024, aiming to extend the mineralization both along strike and at depth.

A 'Remarkable Story'

Bob Moriarty of 321gold wrote in a July 16 piece that Silver North has a "remarkable story."

"Silver North's flagship project is the Haldane property in the renowned Keno Hill Silver District of the Yukon," he noted. "Silver North produced exceptional results dating back to 2020, reporting an impressive 818 g/t (grams per tonne) silver across 1.78 meters within an 8.72-meter section of 311 g/t Au (gold). Last year, Silver North identified a new zone they've designated the Main Fault in the Haldane property. Hole 24-30 yielded 0.73 meters of 3,422 g/t silver Eq within 1.83 meters of 1,491 g/t silver Eq."

Moriarty continued, "With the recent silver price surge and corresponding increase in Silver North shares, the company now has a market valuation of just over CA$11 million. That's not quite as ridiculously undervalued as it was two weeks ago, but it remains extraordinarily cheap."

Ahead of the Herd's Rick Mills noted that the company "offers investors exposure to one of the most prolific silver districts in Canada and the world — Keno Hill — which is seeing major investment from Hecla Mining, the largest silver producer in the United States, following Hecla’s 2022 takeover of Alexco Resources."

Mills added, "Silver North’s underexplored Haldane project demonstrates high-grade, high-width potential akin to the veins being mined at Keno Hill."

The Catalyst: Silver Bull Market Officially Underway

According to an opinion piece published July 15 by Jesse Colombo for Kitco News, "silver's bull market has officially begun."

"Silver has officially broken out in a big way, kicking off its bull market," he wrote. "Multiple confirmations I was watching for have now been fulfilled, and silver still has plenty of fuel left in the tank."

Over the last year, while gold experienced substantial gains, silver was consistently hindered by two key resistance levels — US$32 to US$33 and US$34 to US$35. These barriers thwarted several attempts at a breakout, confining silver to an extended period of consolidation. However, this pattern shifted dramatically a month ago when silver effectively pierced through these crucial thresholds. Although there was a brief pause in recent weeks, Colombo said this as a necessary consolidation phase preceding a major leap forward. This past Friday, that leap materialized, marking a definitive breakout and heralding the official commencement of silver's bull market.

Robust industrial demand has supported the silver market and has been the primary driver behind silver's significant supply deficit, Neils Christensen wrote for Kitco the day before. However, the commodities team at Macquarie, led by Marcus Garvey, noted that investment interest is now in the driver's seat.

"As we argued in March, against a healthy physical supply-demand backdrop, 'the return of stronger financial buying, including through derivative positioning, retains the scope to drive periods of pronounced silver performance,' and it is exactly this which we believe has lifted prices," the analysts said in a note published late last month, Christensen reported.

Ownership and Share Structure

According to Refinitiv, eight strategic entities own 17.79% of Silver North Resources. The Top 3 shareholders are Pacific Opportunity Capital Ltd. with 6.13%, Fruchtexpress Grabher Gesellschaft mbH & Co. with 5.21%. The board and management hold 16.14%, according to Silver North, including Executive Chair Mark T. Brown who owns 5.5%.

The rest is in retail. Currently, there are no other institutional investors, yet.

Refinitiv reports Silver North having 61.39 million outstanding shares and 50.47 million free float traded shares. The explorer has a market cap of CA$14.1 million and a 52-week range of CA$0.07–0.25 per share.