Andean Silver (ASX:ASL) has doubled its share purchase plan (SPP) to AU$6 million due to strong shareholder demand, following applications totaling around AU$18 million, well exceeding the original AU$3 million target, according to a Tuesday Australian bourse filing.

The SPP was offered to 2,945 eligible shareholders, with 977 participating, including custodian applications, representing a 26% participation rate, per the filing.

A total of 3.2 million new fully paid ordinary shares will be issued under the SPP on Tuesday, with trading expected to start on Wednesday, and any excess application funds from the scale-back will be refunded to shareholders without interest on Jan. 12, the filing said.

The AU$36 million raised through the placement and SPP will be used to accelerate drilling at the Cerro Bayo silver-gold project, as well as to support project studies, assess nearby land acquisitions, cover general working capital needs, and fund costs related to the raisings, the filing added.

The company's shares fell 2% in recent Tuesday trade.