Alaska Silver Corp. is moving ahead with a U.S. initial public offering of 11,904,762 units, each made up of one subordinate voting share and a warrant exercisable for one share, according to an amended registration statement filed on Monday.
The filing assumes a public offering price of $0.84 per unit, in line with the company’s recent TSX Venture Exchange close converted to U.S. dollars, and sets an assumed warrant exercise price of $1.26 with a three year term.
The shares and warrants will separate immediately at issuance and the company does not plan to list the warrants.
Cantor Fitzgerald is listed as sole bookrunner on a firm commitment deal. The company also granted the underwriter a 30 day option to buy up to 1,785,714 additional units to cover any overallotments.
At the assumed price, the offering would total about $10 million in gross proceeds.
Alaska Silver estimates net proceeds of roughly $8.6 million after underwriting discounts and expenses, or $9.9 million if the overallotment option is fully exercised.
About $4.2 million would go to exploration, with 6 percent of gross proceeds earmarked to repay a portion of a promissory note.
The company also plans to use approximately $1.32 million to repay a shareholder loan provided in March. Remaining funds would support working capital.
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The company says it is seeking quotation of its subordinate voting shares on the OTC market in the United States and that no application will be made to list the warrants on any national exchange.
The shares will continue to trade in Canada on the TSX Venture Exchange under the symbol WAM. The offering comes as Alaska Silver works to advance its Illinois Creek district in western Alaska.
The company’s Waterpump Creek target hosts an inferred resource of 74.9 million silver equivalent ounces at an average grade of 980 grams per metric ton, based on an April 2024 estimate disclosed in the prospectus under U.S. mining disclosure rules.
Management says 2024 exploration focused on targets near Waterpump Creek and Illinois Creek.
Alaska Silver reports continuing losses and limited cash, and its auditor flagged substantial doubt about the company’s ability to continue as a going concern.
The company recorded net losses of $7.28 million in 2024 and $10.07 million in 2023, and says additional financing will be required to fund operations.
The prospectus indicates the deal will be offered in the United States and, under a listed issuer financing exemption, in Canadian provinces other than Quebec.
Cantor Fitzgerald Canada will act as agent for any sales in Canada while the U.S. broker dealer will handle sales in the United States. The underwriter’s obligations are subject to customary conditions.
Until the registration is declared effective, the pricing and timing remain subject to change.
The company’s assumed per unit price is a placeholder for calculations, and the warrants would be immediately exercisable upon issuance if the deal proceeds as outlined.
The push follows other recent offerings, such as Klarna’s Wall Street debut, highlighting signs of renewed activity in the market.”
