Sunshine Silver Mining & Refining Company has initiated an initial public offering for 20 million shares of its common stock, with an indicated pricing range of $13.50 to $16.50 per share, the company said in a press release.
The offering includes a 30-day option for the underwriters to acquire as many as 3 million additional shares, an arrangement commonly used to cover over-allotments. Sunshine’s common stock has received approval to be listed on the New York Stock Exchange under the symbol "SSMR," although that listing remains subject to the issuance of an official notice of issuance.
Leading the transaction as joint lead book-running managers are Morgan Stanley, Scotiabank and BMO Capital Markets. Canaccord Genuity, Citigroup and RBC Capital Markets are participating as joint bookrunners.
Sunshine Silver has filed a registration statement with the U.S. Securities and Exchange Commission, but that filing has not yet become effective. As a result, the securities the company proposes to sell cannot be distributed or transferred until the registration statement is declared effective by the SEC.
The company operates within Idaho’s Coeur d'Alene Mining District and is focused on efforts to return the historic Sunshine Mine to production. According to the company’s description, it is the largest holder of mineral rights in the district and runs what it characterizes as a vertically integrated mine-to-mill-to-refinery operation, including a permitted onsite silver refinery.
Context and offering structure
The announced IPO size is 20 million common shares, with an underwriter over-allotment option of up to 3 million shares exercisable for 30 days. The named financial institutions serving as joint lead book-running managers and joint bookrunners will oversee distribution and pricing, subject to the successful effectiveness of the SEC registration statement and any procedural requirements tied to the NYSE listing.
Operational footprint
Sunshine Silver’s operations are concentrated in the Coeur d'Alene Mining District in Idaho, where the company states it controls the largest share of mineral rights. The firm describes its business as a vertically integrated platform spanning mine, mill and refinery activities, and notes it has an onsite silver refinery that is permitted.
This offering and the steps required for the sale and listing remain contingent on regulatory and exchange procedural milestones outlined above.