Sun Silver (ASX:SS1) dawns on the Silver State with ASX entry

Sun Silver has entered the Australian Stock Exchange with an early and oversubscribed $13 million initial public offering to begin expanding and developing what is already one of the exchange’s most significant silver resources collection from the US state of Nevada.

The Perth-headquartered company joins public trading with an inferred 125.4 million tonne resource at 43.5 grams per tonne silver and 0.34g/t gold for 292 million ounces of silver equivalent at its Maverick Springs flagship.

That came from around 200 holes and 60,000 metres of drilling over around a fifth of the property, hosted on a prospective Carlin Trend and resting close to the world-class assets and infrastructure that gave the Silver State its name.

The deposit remains open along strike and at depth and the ASX’s new entrant is bullish on expanding its resource and serving silver into precious metal markets and rising industrial applications.

Sun Silver Executive Director Gerard O’Donovan said the company was delighted with an outstanding response and looks forward to beginning its public journey with demand that saw it close three weeks early.

“I would like to take this opportunity to welcome all our new investors, and also to thank the ASX for facilitating our listing well ahead of the original target date,” O’Donovan said.

“Maverick Springs comes to market at a very exciting time for the global silver industry, which is in the middle of a supply squeeze driven by surging industrial demand for the metal and particularly because of its pivotal role in the production of solar panels.”

O’Donovan noted industry figures showing solar on track to become the dominant form of renewable energy in a scant few years and surpass the energy derived from coal and gas – exacerbating deficits seen over the past few years.

“There could be no better time to be exploring and developing a large silver asset with huge upside, and we are looking forward to getting on the ground at Maverick Springs as quickly as possible to get our work programs underway.”

Now humming away under the SS1 ticker, Sun Silver says it has enough in the bank to complete infill and resource expansion drilling, begin mine and processing studies, process grant applications, with enough left over for marketing, exploration, and acquisitions.

And it was an encouraging response from the ASX with the SS1 initial 20c share price doubling by around 11 o’clock Perth time.

Silver-state demand

While often considered tied to gold as jewellery and a safe-haven investment, rising demand from technology and industry has led to a largely unnoticed deficit.

A 140-million-ounce shortfall in 2023 was the third consecutive year of noteworthy annual deficits as demand from solar panels alone increased by 330 per cent since 2014.

That current trajectory would leave the solar industry demanding up to 98% of current global reserves by 2050, and there are other demands to be considered.

Leadership

O’Donovan has extensive exploration, development, and operational experience across his roles as Executive Director Chair of James Bay Minerals (ASX:JBY), as the recent Managing Director of Battery Age Minerals (ASX:BM8), and work with majors Rio Tinto (ASX:RIO) and Pilbara Minerals (ASX:PLS).

He will be joined by Non-Executive Chair Dean Ercegovic, best known as the founding director and Chief Operating Officer of multinational mineral operator Primero Group.

Multi-decade metallurgist and manager and deliverer of over 10 operating plants Nathan Marr will serve as a Non-Executive Director while Robert Anderson and his 17 years of exploration geology experience centred around Nevada is in the post of Exploration Consultant.

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