Sales of common shares will be made through 'at-the-market' distributions, at the market prices prevailing at the time of each sale, and as a result prices may vary from purchaser to purchaser during the period of distribution.
No offers or sales of common shares will be made in Canada on the Toronto Stock Exchange or other trading markets in Canada, the mid-tier Canadian silver miner reported.
A prospectus supplement relating to the share offer has been filed with the relevant authorities in the US and Canada.
The company, which operates three high grade silver mines in Mexico, intends to use the net proceeds of the offering, if any, together with the company's current cash resources, to expedite the company's brown-fields exploration drilling programs at existing operations in order to extend their mine lives.
Funds will also be used to advance the exploration and development of the company's Terronera project with further drilling and on engineering and related studies, while any cash left over will be used to augment working capital.
The company will pay Cowen compensation, or allow a discount, equal to 3% of the gross sales price per common share sold under the sales agreement.