Two equity offerings by
In early November, the company announced it had sold 7.2 million units at US$12 each. A unit consists of one share and one half-share purchase warrant. One warrant entitles the holder to buy one share at US$18 over the next three years.
An additional 875,666 units were sold, following the same pay schedule, a few days later.
Upon completing the sales to institutional and individual investors, the company increased its outstanding shares by about 30% to 34.4 million shares. The warrants from both offerings, if exercised, would raise another US$73.6 million for the company. To date, the company has US$100 million in cash and less than US$2 million in debt.
Apex will use the funds to begin building the US$410-million San Cristobal silver-lead-zinc mine in the Altiplano of southwestern Bolivia. Some of the funds will also be used to continue exploration at other properties and acquire additional assets.
San Cristobal contains the world’s largest open-pit silver deposit, with a resource of 240 million tonnes grading 62 grams per tonne, as well as 1.67% zinc and 0.58% lead.
At 40,000 tonnes per day, the operation should produce 24 million oz. silver annually in the first five years of mining. The company is also considering expanding to 60,000 tonnes per day after the first several years of operation.
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