When the precious metals bull begins to roar, silver roars along with it. In general, when the metals go down silver goes down more and faster than gold. When precious metals climb, silver climbs faster and goes higher. So if you believe that we are in a metals bull market you may well want to own a good silver stock. That and knowing that silver investors are goofier than a three legged ground hog. They take to silver like a kitten takes to catnip.
Aftermath Silver Ltd. (AAG:TSX.V) wants to become the go-to silver company. The young company just raised $2.5 million CAD at $0.08 a share and followed up with a $3 million CAD raise at $0.20 most of which went to Eric Sprott who holds 19.9% of the outstanding shares. Eric likes silver a lot. Each of the private placements came with a half warrant. At the end of the day there will be about 76 million shares issued and outstanding and about 100 million on a fully diluted basis. The $0.08 placement warrants will bring in $1.92 million when exercised. The $0.20 placement will bring in an additional $2 million upon exercise.
The company intends to use the money to advance two big silver projects located in Chile. The first project is the Cachinal silver project where Aftermath is buying 80% of the project from Apogee for $1.575 million. Cachinal shows a 43-101 resource of just over 27 million ounces. Grade varies from 61 g/t Ag in the inferred open pit to 188 g/t Ag in the underground-indicated category. Payments are spread over eighteen months.
The second project is the Challacollo silver property with a 43-101 resource of over 37 million ounces of silver. It's a high-grade deposit showing 200 g/t Ag in indicated category and 134 g/t Ag in the inferred category. Aftermath is buying 100% of the project from Mandalay for $7.5 million CAD over 15 months.
Both projects have had underground mining. Aftermath believes each has lower cost open pit potential. Drilling to define more ounces and prove the potential for economic open pits will begin in Q1 of 2020. The company is both well managed and well cashed up. I have known Michael Williams, the Chairman, for almost 17 years and Ralph Rushton, the President and CEO, for nearly that long. Ralph was with Radius and Western Pacific. Michael was with Full Metal Minerals and Underworld.
I was lucky enough to get into the $0.08 placements. Warrants from both placements are in the money and I would expect them to start being exercised as soon as the shares become free trading.
Michael Williams and Ralph understand the importance of communication. There are few actual pure silver companies and they will be branding Aftermath as The Silver Company for investors. Chile has had civil issues lately after a 4% hike in subway fares but with 25% of the economy based on mining I do not expect Aftermath to be affected at all. The issues are in the cities, not with the mining companies.
Aftermath is an advertiser. I am a shareholder. Do your own due diligence.
Aftermath Silver Ltd.
AAG-V $0.275 (Nov 21, 2019)
FLMZF-OTCBB 59.8 million shares
Aftermath Silver website.
Bob Moriarty founded 321gold.com with his late wife, Barbara Moriarty, more than 16 years ago. They later added 321energy.com to cover oil, natural gas, gasoline, coal, solar, wind and nuclear energy. Both sites feature articles, editorial opinions, pricing figures and updates on current events affecting both sectors. Previously, Moriarty was a Marine F-4B and O-1 pilot with more than 832 missions in Vietnam. He holds 14 international aviation records.
Disclosure:
1) Bob Moriarty: I, or members of my immediate household or family, own shares of the following companies mentioned in this article: Aftermath Silver. Aftermath Silver is an advertiser on 321 Gold. I determined which companies would be included in this article based on my research and understanding of the sector.
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