Andean Silver Raises A$36 Million to Fast-Track Cerro Bayo Drilling
Andean Silver Limited has doubled its Share Purchase Plan to A$6 million following overwhelming shareholder demand, raising total funds of A$36 million to accelerate exploration at its Cerro Bayo Silver-Gold Project.
- SPP doubled from A$3m to A$6m due to strong shareholder interest
- Total capital raised including placement reaches A$36m before costs
- Funds earmarked for accelerated drilling, resource growth, and land acquisitions
- Participation rate of 26% among eligible shareholders with scale-back applied
- New shares issued commence trading on 7 January 2026
Strong Shareholder Support Spurs Capital Raise
Andean Silver Limited (ASX, ASL) has responded to robust shareholder demand by doubling the size of its Share Purchase Plan (SPP) from an initial target of A$3 million to A$6 million. This move follows applications totalling approximately A$18 million, significantly exceeding the original target. Combined with a recent placement, Andean has now raised a total of A$36 million before costs, positioning the company with around A$61 million in cash to advance its Cerro Bayo Silver-Gold Project.
Accelerating Exploration and Growth
The freshly raised capital will be directed towards accelerating drilling programs focused on resource growth and conversion, as well as regional exploration around Cerro Bayo. Additionally, funds will support ongoing project studies and the evaluation of potential land acquisitions near the project site. This strategic injection of capital aims to leverage Andean’s existing infrastructure to facilitate a capital-light and efficient restart of operations.
Equitable Shareholder Participation Amid Oversubscription
The SPP attracted applications from 977 eligible shareholders, representing a 26% participation rate. To manage the oversubscription, Andean implemented a scale-back policy designed to limit dilution and provide an equitable allocation relative to shareholders’ holdings at the record date. The scale-back percentages varied by shareholding size, with larger shareholders receiving a higher proportion of their applications. Excess funds from scaled-back applications will be refunded without interest by 12 January 2026.
Market Implications and Next Steps
Andean’s Chairman, David Southam, highlighted the strong demand as a reflection of the company’s rapid progress and the market’s confidence in its growth prospects. The company’s enhanced cash position provides a solid foundation to expedite exploration activities and unlock value at Cerro Bayo. New shares issued under the SPP are set to commence trading on 7 January 2026, marking a new phase for Andean as it pushes forward with its development plans.
Bottom Line?
With a strengthened balance sheet, Andean Silver is poised to accelerate its Cerro Bayo project, but investors will watch closely for drilling results and resource updates.
Questions in the middle?
- How will the accelerated drilling impact Cerro Bayo’s resource estimates and timelines?
- What are the prospects and strategic importance of the potential land acquisitions near Cerro Bayo?
- How might the scale-back allocation affect shareholder sentiment and future capital raising efforts?
