SilverCrest Mines closes $34.5 mln offering with over-allotment option

SilverCrest Mines (CVE:SVL)(NYSE MKT:SVLC)(AMEX:SVLC) says it has closed the prospectus C$30 million offering it announced earlier this month. The offering was completed together with the full exercise of the over-allotment option, for an additional $4.5 million in proceeds - resulting in $34.5 million in total new funds. 

The company said it plans to use these funds to pay out and eliminate the remainder of its gold hedge commitments and for general corporate purposes. 

It issued a total of 13.5 million common shares at a price of $2.55 each. The offering was co-led by Dundee Securities and Canaccord Genuity, who received a cash commission at closing.

Vancouver-based SilverCrest Mines is a Canadian precious metals producer whose flagship property is the 100 per cent-owned Santa Elena Mine, which is located 150 km northeast of Hermosillo, near Banamichi in the State of Sonora, Mexico. 

The mine is a high-grade, epithermal gold and silver producer, with an estimated life of mine cash cost of US$8 per ounce of silver equivalent. SilverCrest anticipates that the 2,500 tonnes per day facility should recover around 4.8 million ounces of silver and 179,000 ounces of gold over the 6.5 year life of the open pit phase of the mine. 

A three year expansion plan is underway to double metals production at the Santa Elena Mine and exploration programs are advancing the definition of a large polymetallic deposit at the La Joya property in Durango State.

Earlier this month, the company said it produced a record amount of silver during the third quarter, prompting it to hike its silver output forecast for the year. 

The junior producer saw silver output of 151,368 ounces for the latest three month period from its Santa Elena mine in Sonora, Mexico, up by 42 per cent from the same period last year. The company cited  improvements in recoveries for the higher-than-projected production.

"Based on our production to date we are increasing our annual silver production guidance from 435,000 ounces to 535,000 ounces. We are maintaining our annual gold production guidance of 33,500 ounces," said president J. Scott Drever in a statement in mid-October.