AbraSilver Resource (TSX: ABRA; US-OTC: ABBRF) is raising $45 million (US$32 million) through a bought-deal share offering to support early works at its Diablillos silver-gold project in Argentina, as the company advances toward a construction decision next year and aims for production by the end of 2029.

The Toronto-based company said in a Thursday release that it has agreed to sell 3.06 million common shares at $14.70 per share. AbraSilver shares were down 5.3% at $14.81 in Toronto on Thursday morning, giving the company a market value of $2.41 billion.

Proceeds from the financing are earmarked for early works expected to begin this quarter at Diablillos in Salta province, as well as for purchases of long-lead equipment. Such spending typically marks the shift from study and permitting work toward pre-construction activity, while long-lead items can be important for maintaining a development schedule once a construction decision is made.

The financing comes after several recent milestones for the project, including a definitive feasibility study released last month, final environmental approval, acceptance into Argentina’s Large Investment Incentive Regime (RIGI), and ongoing exploration success beyond the current mine plan. Taken together, those steps are central to de-risking a mine proposal before larger construction funding is arranged.

“The recently completed definitive feasibility study highlights Diablillos as a robust, high-margin, long-life precious metals project with significant production potential and substantial exploration upside,” AbraSilver said.

Drilling

The bought-deal offering is being led by underwriters including National Bank Financial, Beacon Securities and Raymond James. The underwriters have an option to purchase an additional 339,000 shares, which could increase gross proceeds to nearly $50 million. The financing is expected to close around July 29.

Diablillos is located about 160 km south of the city of Salta in northwestern Argentina.

On July 13, AbraSilver reported drilling results that indicated further resource growth potential beyond the limits considered in the Diablillos feasibility study. Hole DDH-26-036 at the Oculto West zone intersected 109 metres grading 221.2 grams silver and 0.72 gram gold from 114 metres downhole, including 14 metres grading 580 grams silver and 0.23 gram gold from 135 metres.

The results “highlight continuity of high-grade oxide silver-gold mineralization in a previously untested area at Oculto West and beyond the DFS mine plan,” Scotia Capital mining analyst Eric Winmill said at the time.

Resource

Diablillos contains 232 million measured and indicated tonnes grading 33 grams silver and 0.34 gram gold, representing 248.1 million oz. contained silver and 2.5 million oz. contained gold. The project also hosts 49.3 million inferred tonnes grading 12 grams silver and 0.26 gram gold, for 18.4 million oz. silver and 420,000 oz. gold.

The definitive feasibility study set out a 25-year open-pit mine with an after-tax net present value of about US$3 billion, a 42% internal rate of return and initial capital costs of US$722 million, including contingency.

The mine is expected to produce an average of 20 million silver-equivalent oz. per year during its first five years, before averaging about 10 million silver-equivalent oz. annually over its mine life.

AbraSilver is also advancing La Coipita, a copper-gold porphyry project in Argentina’s San Juan mining district near the Chilean border, through a joint venture with Teck Resources (TSX: TECK.A, TECK.B; NYSE: TECK). The Miocene porphyry-epithermal belt in the region hosts world-class deposits including Filo del Sol, Los Azules, El Indio, Veladero, Pascua Lama and El Pachon.