The company is offering around 29.7 million shares at A$0.06 per share and 14.8 million free attaching options, exercisable at $0.10 expiring on or before 13 November 2012, on the basis of one option for every two shares.
The offer represents a 20% discount to the average share price, based on the five days trading prior to today's announcement.
The funds will be used to advance the company's wholly owned Webbs Silver Project, the highest grade undeveloped silver project in Australia with a Resource of 11.75 million ounces at 245 grams per tonne (g/t) silver.
Around 8.4 million ounces of that Resource is already in the higher confidence Measured and Indicated categories.
Silver Mines is targeting a Resource update in early 2013, along with open pit scoping and conceptual underground studies planned.
Importantly, there is still plenty of exploration upside with the potential to increase the Resource further evident in the defined exploration target of 25 to 57 million ounces of silver, inclusive of the Resource.
Silver Mines will exploit this potential via a planned 30,000 metre drilling program, comprising 85% reverse circulation drilling and 15% diamond drilling.
Positive metallurgical results indicate an above 90% silver recovery to doré bars.
The New England Orogen, is a significant mineral province in Eastern Australia that hosts a variety of mineral deposits associated with granitic-porphyry intrusions, volcanics and surrounding rocks.
The company's New England projects contain hundreds of recorded silver and base metal occurrences and many prospects at various stages of evaluation.
The Webbs Project is classified as a structurally controlled, sediment hosted, felsic intrusion associated, silver-rich polymetallic vein deposit.
This group of deposits represent some of the largest silver rich districts in the world, such as Couer d A'lene, Keno Hill, Kokanee in North America, Freiberg-Harz districts in Germany and Pribram in the Czech Republic.
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