Led by an experienced board and management, Sun Silver is aiming to raise between $10m and $13m to reinvigorate exploration at the historic Maverick Springs project.
Funds raised through the IPO will focus on upgrading the current inferred mineral resource of 292 million ounces silver equivalent at an average grade of 72.4 grams per tonne.
“We are delighted to launch the Sun Silver IPO to investors at an extremely exciting time in the growth and development of the silver industry globally,” executive director Gerard O’Donovan said.
“What sets us apart is that Sun Silver is underpinned by a globally significant gold-silver resource, comprising 292Moz of silver equivalent in the Tier-1 jurisdiction of Nevada, including 175Moz of contained silver.”
The IPO launch comes at a time when silver prices are surging, with demand for the precious metal’s use in solar panels having increased by 330% since 2014.
Maintaining the current trajectory of solar panel manufacturing could require up to an estimated 85-98% of current global silver reserves by 2050.
Mr O’Donovan – formerly of Pilbara Minerals (ASX: PLS) – said the additional 125 gigawatts per annum of solar energy capacity targeted in the US by 2030 is expected to drive huge demand for silver, a critical metal required in the manufacture of solar panels.
Silver makes up to approximately 23% of the raw materials cost of a photovoltaic (PV) solar cell, with silver paste a key component in the PV panel supply chain.
“We are looking forward to unlocking the potential of the Maverick Springs project, which offers significant upside from targeted exploration along strike from the current resource,” Mr O’Donovan added.
Once it obtains the IPO funds, Sun Silver will undertake a strategic work program including the completion of in-fill and resource expansion drilling.
It will also expand on previously completed metallurgical test work in addition to new work, including mine and processing studies for Maverick Springs and early-stage studies to assess the feasibility of silver paste and solar energy opportunities.
Sun Silver will have an estimated market capitalisation of around $25m upon listing, with Mr O’Donovan joined on the board by non-executive chair Dean Ercegovic (ex-Primero) and non-executive director Nathan Marr.
Robert Mitchell (ex-Newmont) will be the company’s exploration manager with Daniel Loughnan chief financial officer.
Sun Silver has appointed Wagtail Capital as lead broker to the raise, with the IPO scheduled to close on 17 May 2024 and the company aiming to list on the ASX around 5 June 2024.
