Silver Storm Mining Ltd. has closed the first tranche of its private placement, raising $14,625,000 in gross proceeds, while also upsizing the total offering to up to $21 million.

The company issued 29,250,000 units priced at $0.50 each in the initial tranche. Strong investor demand prompted Silver Storm to increase the financing target from 30,000,000 units to up to 42,000,000 units. Each unit consists of one common share and one-half of a common share purchase warrant. Whole warrants are exercisable at $0.70 for 18 months following the closing of each tranche. All securities issued under the placement carry a four-month and one-day hold period.

The financing secured backing from mining investor Eric Sprott, who subscribed for 15,000,000 units totaling $7,500,000 through 2176423 Ontario Ltd. Following this initial closing, Sprott holds approximately 12.9% of the company's outstanding common shares on a non-diluted basis, or roughly 15.0% on a partially diluted basis if all warrants are exercised.

Silver Storm intends to direct the net proceeds toward funding surface and underground drilling programs at the La Parrilla Silver Mine Complex in Durango State, Mexico, alongside general corporate and working capital needs.

The past-producing La Parrilla complex features a 2,000-tonne-per-day mill and three underground mines. Silver Storm initiated hot commissioning of the sulphide processing circuit at the site following prior debt and offtake arrangements.

The company expects to close the remaining balance of the upsized private placement on or about August 28, 2026, subject to regulatory conditions and final approval from the TSX Venture Exchange.

Read the full announcement: Silver Storm Closes $14.625 Million First Tranche of Non-Brokered Private Placement Led by Eric Sprott and Announces Further Upsize Up to $21.0 Million