Silver Storm Mining Ltd. (“Silver Storm” or the "Company") (TSX.V: SVRS | OTC: SVRSF | FSE: SVR), is pleased to announce that it has entered into a definitive agreement (the “Agreement”) with Samsung C&T Hongkong Ltd and QSSC S.A.DE C.V., both subsidiaries of Samsung C&T (“Samsung”) on an offtake prepayment financing for the restart of operations at the past producing La Parrilla Silver Mine Complex (“La Parrilla”), in Durango, Mexico.
Key Highlights:
- Facility: US$7.0 million (the “Amount”) secured Prepaid Financing Facility for 18 months
- Interest Rate: 1-Month SOFR1 + 4.75%
- Repayment Terms: Six months interest and capital repayment grace period from initial availability, with repayments made in equal monthly installments over a 12-month period. Repayments may be made as deductions from concentrate sales.
- Security: Corporate guarantee and share pledge, and first ranking security in the assets of La Parrilla.
- Offtake: Offtake for 100% of the lead-silver and zinc concentrate produced at La Parrilla over a two-year period.
Note 1. Secured Overnight Financing Rate |
The proceeds of the Facility will be used to fund the restart of La Parrilla operations, including mill rehabilitation and upgrading, underground development and working capital for La Parrilla.
Greg McKenzie, President and CEO, commented, “The Agreement with Samsung represents a key step in our strategic vision of transitioning the Company into an operating entity. The Company has sufficient liquidity to complete the planned restart and rehabilitation activities at La Parrilla. Samsung’s involvement as a guaranteed purchaser for the concentrates reflects the confidence of a leading industry participant in our path forward and provides Silver Storm with another partner that is committed to bringing La Parrilla back into operation.”
The Offtake grants Samsung the right to purchase 100% of the Lead-Silver concentrate and the Zinc concentrates produced at La Parrilla for a period of two-years. Drawdown is subject to certain customary conditions precedent. Facility repayments may be made as deductions from the sale of concentrates.
Cancellation of Stock Options
Further to its news released dated October 2, 2025, the Company advises that 500,000 stock options that were to be issued to an advisor of the Company will not be issued and have been cancelled.
About Silver Storm Mining Ltd.
Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Silver Storm is committed to restarting operations at its 100% owned La Parrilla Silver Mine Complex, a prolific operation comprised of a 2,000 tpd mill and three underground mines. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico. For more information regarding the Company and its projects, please visit our website at www.silverstorm.ca.
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements:
