Shareholder SSR Mining Inc. (TSX, NASDAQ: SSRM) has indicated that it will exercise its right to maintain its pro rata ownership interest of up to 9.9% of SilverCrest’s outstanding shares. Accordingly, SSR will purchase a minimum of 718,000 SilverCrest shares (at the same price) for gross proceeds of C$4.2 million in a separate private placement deal.

Shares of SilverCrest Metals rose over 8% on Wednesday, hitting an all-time high of C$6.80. The company has a market capitalization of C$579.5 million.

Net proceeds of the financing will be used for continued exploration and advancement of the Las Chispas project to feasibility level, as well as for working capital.

Located approximately 180 km northeast of the town of Hermosillo in Sonora, Mexico, SilverCrest’s Las Chispas property consists of 28 concessions for a total area of just over 1,400 hectares.

Based on a resource estimate released in March, Las Chispas contains one million indicated tonnes grading 6.98 g/t Au and 710.6 g/t Ag, or 1,234 g/t AgEq, containing 39.8 million ounces of AgEq. The company has 14 active drill rigs on the site that continue to test, expand and upgrade the high-grade resource delineated to date.

Last week, SilverCrest was granted approval by Mexico’s Secretariat of Environment and Natural Resources for its operating permit to develop the Las Chispas project, including the construction of a 3,000 t/d underground mine and a conventional processing facility. The plan is to begin construction activities in H2 2020, the company said.