Black Bear Launches $12.5M Raise to Drive Shafter Silver Resource Growth and Restart
Key Takeaways
- Black Bear Minerals has secured firm commitments for a $12.5 million placement at $0.55 per share — a 16.0% discount to last traded price — with Canaccord Genuity acting as Sole Lead Manager and Bookrunner.
- Proceeds will fund Stage 1 underground drilling at the Shafter Silver Project, JORC conversion of a 17.57Moz silver foreign estimate (currently NI 43-101), and restart engineering and mine planning studies.
- Shafter is a past-producing mine with more than 160km of historic underground workings, a modern permitted Merrill-Crowe processing plant, and a historic production record of approximately 35.2Moz silver at 521g/t Ag — supporting a low-capital restart pathway.
- Executive Chair Matthew Hayes is subscribing for $500,000 in the placement (909,091 shares), subject to shareholder approval at the AGM in early-mid November 2026.
- Black Bear's second asset, the Independence Gold Project in Nevada, delivered a Scoping Study on 3 August 2026 with a post-tax NPV₅ of A$511 million, 64% IRR, and 1.4-year payback — giving the company near-term catalysts across both projects.
Black Bear Minerals launches $12.5M placement to fast-track Shafter Silver Project
Black Bear Minerals (ASX: BKB; OTCQX: BKBMF) has received firm commitments to raise $12.5 million (before costs) via a placement to advance exploration and development at the Shafter Silver Project in Texas. The raise was strongly supported by new and existing domestic and international institutions and sophisticated investors, signalling institutional confidence in the company’s dual US precious metals strategy. Canaccord Genuity (Australia) Limited acted as Sole Lead Manager and Bookrunner.
The placement will issue 22,727,273 new shares at $0.55 per share, with all new shares ranking equally with existing fully paid ordinary shares.
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Placement terms and where the money is going
The placement issue price of $0.550 represents a 16.0% discount to the last traded price of $0.655 on 25 August 2026, and a 12.5% discount to the 5-day VWAP of $0.628.
Net proceeds from the placement will be applied to four key areas:
- Stage 1 underground drilling program targeting resource growth and definition at Shafter
- Resource validation and infill drilling to support JORC conversion of the Shafter foreign estimate, mine planning and restart studies
- Advancement of permitting and studies including restart engineering and mine planning
- Working capital, including ability to cash settle a portion of deferred acquisition consideration and corporate costs
Executive Chair Matthew Hayes will subscribe for $500,000 in the placement (equating to 909,091 shares), subject to shareholder approval at the Annual General Meeting in early-mid November 2026.
Dennis Lindgren, Chief Executive Officer
“The strength of support for this raise, from both existing shareholders and a number of high-quality new institutions joining the register, reflects growing recognition of what Shafter represents — a past-producing, high-grade silver project in Texas with genuine restart optionality, alongside the substantial progress at Independence through MRE expansion, a strong Scoping Study and ongoing development work. This funding lets us move straight to the work that matters: getting underground and drilling to grow and define the Shafter resource, converting the foreign estimate to JORC, and progressing engineering studies that will underpin a restart decision. We are grateful for the confidence shown by our new and existing investors, and we look forward to delivering on it”
The placement timetable is structured as follows:
| Milestone | Timing |
|---|---|
| Trading halt lifted / Placement announced | Friday, 28 August 2026 |
| Settlement of new shares | Thursday, 3 September 2026 |
| Allotment and quotation | Friday, 4 September 2026 |
| General Meeting (Director Subscription approval) | Early-Mid November 2026 |
| Issue of Director Subscription shares | Early-Mid November 2026 |
Inside the Shafter Silver Project — high-grade, past-producing, restart-ready
The Shafter Silver Project is an advanced-stage, high-grade silver project located in Presidio County, Texas, approximately 64km south of Marfa, on private land in a mining-friendly jurisdiction. What sets Shafter apart from greenfield exploration projects is the substantial existing infrastructure already in place — much of it modernised between 2011 and 2012.
The site includes a modern permitted Merrill-Crowe processing plant and refinery, grid-connected power, water rights, extensive support infrastructure, and more than 160km of historic underground workings. The historic Presidio Mine previously produced approximately 35.2Moz silver at average grades of 521g/t Ag, which supports a low-capital restart strategy rather than a full greenfield development pathway.
Beyond the existing resource, Black Bear is currently undertaking exploration and technical work programs aimed at expanding and upgrading the resource base. This includes drilling along the largely untested 2.4km MacDaniel Trend and assessing shallow mineralisation for potential open-pit extraction. Recent rock chip sampling has highlighted broader polymetallic potential, with results of up to 3,100g/t Ag, 4.5% Zn and 6% Pb outside the current resource area.
What “foreign estimate to JORC conversion” means
The Shafter resource is currently classified as a foreign estimate prepared under Canadian NI 43-101 standards. This is a legitimate resource estimate, but it is not classified under the JORC Code 2012, which is the standard used by ASX-listed companies.
Black Bear is now undertaking validation drilling and technical work to convert this foreign estimate into a JORC-reportable resource. This involves verifying the historical data, conducting infill drilling, and ensuring the estimate meets JORC’s classification criteria (Measured, Indicated, Inferred).
A competent person has not yet done sufficient work to classify the foreign estimate as a mineral resource in accordance with the JORC Code 2012. It is uncertain whether further evaluation and exploration will result in an estimate reportable under the JORC Code. The company is progressing this work now, and the placement funds will directly support this conversion process.
The current foreign estimate for Shafter is detailed below:
| Classification | Cut-Off (Ag g/t) | Tonnes (Mt) | Grade (Ag g/t) | Ag Ounces (Moz) |
|---|---|---|---|---|
| Measured | 137 | 0.09 | 299 | 0.89 |
| Indicated | 137 | 1.01 | 314 | 10.17 |
| Inferred | 137 | 0.79 | 256 | 6.51 |
| Total | 137 | 1.89 | 289 | 17.57 |
Foreign estimate — NI 43-101, not JORC-classified.
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A two-asset US precious metals story and what comes next
Black Bear Minerals is positioning itself as a North American precious metals developer with Tier-1 US assets: the Shafter Silver Project (Texas) and the Independence Gold Project (Nevada). Together, the assets provide exposure to large-scale domestic silver and gold systems supported by existing infrastructure, established mining districts, and strong leverage to precious and critical metals markets.
The Independence Gold Project, located in Nevada’s Battle Mountain region, contains a JORC Mineral Resource and was the subject of a Scoping Study announced on 3 August 2026. That study delivered a post-tax NPV₅ of approximately A$511 million, a 64% IRR, and a 1.4-year payback. The preliminary production target comprises 31.9Mt at 0.30g/t gold and 6.09g/t silver, with estimated recovered production of approximately 250koz gold and 1.77Moz silver over a 9.7-year mine life, with estimated initial capital of approximately A$119 million.
The Scoping Study is preliminary in nature. The production target comprises approximately 73% Indicated and 27% Inferred Mineral Resources. There is a low level of geological confidence associated with Inferred Mineral Resources, and there is no certainty that further exploration will result in the determination of Indicated Mineral Resources or that the production target will be realised.
Black Bear also retains a non-core lithium exploration portfolio in Québec’s James Bay region, which provides additional optionality.
The $12.5 million placement provides Black Bear with the capital to execute on three immediate priorities at Shafter:
- Get underground and drill to grow and define the Shafter resource
- Convert the foreign estimate to JORC standards through validation and infill drilling
- Advance restart engineering and mine planning studies
This places Black Bear as a funded, dual-commodity US developer with near-term catalysts across both projects, backed by institutional support and a clear pathway to production optionality at Shafter.
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