Great Panther Silver Limited, headquartered in Vancouver, Canada, is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The Company owns two operating mines in Mexico, and employs over 800 people.

Great Panther Silver completes $24 million bought deal financing

Wednesday, April 13, 2011 by Ian Mclelland

Great Panther Silver (TSE:GPR, AMEX:GPL) confirmed this morning that it had now closed a bought deal financing, securing gross proceeds of CAD$24.15 million. The bought deal was completed by a syndicate of underwriters, lead by Salman Partners.

"We are very pleased with the strong investor support for the Company as evidenced by the over-subscription," said Robert Archer, President & CEO.

These are good times for silver producers like Great Panther Silver, with the precious metal trading above $40 per ounce for the first time in decades.

Just last month, Great Panther reported full year net income of $5 million, or $0.04 per diluted share, while earnings from mining operations, which exclude costs of sales and amortization, jumped 63% to $18.7 million during 2010. Revenues soared to $42.2 million from $31.7 million a year earlier.

Great Panther sold 1.43 million ounces of silver in 2010 at a cash operating cost of US$7.43 per oz of silver, net of by-product credits. Cash costs rose 33% from 2009 on higher mining expenses, but as silver prices rise due to risk-averse investors, the average revenue per silver ounce sold was $21.26, a 42% increase from the previous year.

The Vancouver based, Mexico focused silver producer is in year two of a three-year strategy to ramp up production to 3.8 million silver equivalent ounces by 2012, which is expected to also decrease unit cash costs. As part of this effort, new equipment has been delivered, plant capacity is being increased, and resources have been expanded.

Great Panther also recently doubled its drilling budget for 2011 to over 60,000 metres.