Silver X Secures US$50 Million to Expand Peru Project

Silver X Mining (TSXV:AGX,OTCQB:AGXPF) has tapped investor demand for exposure to the rising silver price, closing a US$50.4 million financing to fund expansion at its flagship project in Peru.

It completed an oversubscribed brokered private placement of secured convertible debentures on Wednesday (March 18), with the full 15 percent over-allotment option exercised, lifting proceeds from US$43.8 million to US$50.4 million.

The company believes the strong uptake points to sustained institutional interest in silver producers as the metal trades above US$70 per ounce, up close to US$40 year-on-year.

The proceeds will be directed toward exploration, development and working capital for the Nueva Recuperada project, where Silver X is undertaking a 40,000 meter drill campaign — its largest to date.

The company is also looking to increase production beyond nameplate capacity, targeting a ramp up to 1,000 metric tons per day by the second quarter of the year.

“Closing this private placement is an important step toward our ambition to become South America’s next premier silver company,” CEO José García said, adding that the company will also look at "selective acquisition opportunities."

“This capital enables us to continue advancing the Nueva Recuperada Project across production expansion, development, and exploration, where we expect to deliver meaningful results in the months ahead.”

Issued at US$730 each, the debentures carry a 10 percent annual coupon and mature in five years.

Investors can convert the securities into shares at approximately US$1.18 apiece, while the company retains flexibility to settle early interest payments in either cash or equity.

The silver price has traded at historic highs in 2026, moving into triple-digit territory in January. The rally has sharpened investor focus on companies with funded growth pipelines and near-term production increases.

However, the market has shown heightened volatility in recent sessions.

The white metal's price fell sharply on Thursday (March 19), with spot silver dropping about 9.5 percent to trade briefly below US$70, and silver futures declining as much as 12 percent.

The selloff comes amid escalating geopolitical tensions and rising inflation concerns tied to the ongoing US-Iran conflict, which has driven swings across various commodities.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.