The company is offering up to 22.75 million units, at a price of 40 cents each, to the public, with the financing expected to close around February 14, subject to regulatory approvals.
Each unit will be made up of one common share and one half of one share purchase warrant. Every whole warrant will be good for the purchase of one additional common share at a price of 55 cents for a period of 18 months after the offering's close.
The company has also granted an over-allotment option, exerciseable for a period of 30 days, to boost the size of the offering by up to 2.275 million units.
Silver Bull said that PI Financial Corp. and Stifel Nicolaus Canada have agreed to act as co-lead placement agents for the offering, while Roth Capital Partners is a co-placement agent in the U.S.
The company plans to use the new funds from the financing for the preparation of a resource update, metallurgical studies and the start of a preliminary economic assessment (PEA) at its Sierra Mojada silver project in Mexico.
It cautioned, however, that as the planned offering is subject to market conditions, there can be no assurance as to whether or when the transaction may be completed, or as to the actual size or terms of the offering.
Silver Bull has been releasing results from its underground drilling program at its Sierra Mojada property for weeks now, revealing continued high silver and zinc grades.
The underground program twinned what the company calls a historical "long hole" data set along a high grade silver zone and the underlying and adjacent high grade zinc zone - both located at the eastern end of the current resource.
The aim of the total 5,000 metre campaign, which concluded last month, was to increase confidence in the historical long hole data set, which represents 38,000 metres of drilling that was either "severely restricted" or discarded in the company's latest NI 43-101 resource report on the Shallow Silver zone last July.
The company said the program actually amounted to 6,500 metres of drilling, which resulted in the twinning of around 17% of the historic 38,000 metre data set. Silver Bull is awaiting final results, after which it will start a revised resource update on the Shallow Silver and Zinc zones - expected this quarter.
Last week, it released the third of five batches of results from the high grade zinc zone, with the company having also just released the tenth batch of high grade silver holes earlier in January.
Based on the updated resource report figures, the company is aiming to complete the maiden PEA on the Sierra Mojada project in the third quarter of this year.
As of July last year, the Shallow Silver Zone hosted a silver resource of 72.1 million ounces in the measured and indicated category, and 10.4 million ounces in the inferred category.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.