- Silver Storm Mining (TSXV:SVRS) signed a definitive agreement with Samsung Construction and Trading Corporation (C&T) for US$7 million in offtake prepayment financing to restart the past-producing La Parrilla silver mine complex in Durango, Mexico
- Besides La Parilla, the company owns the San Diego project, one of the largest undeveloped silver assets in Mexico
- Silver Storm stock has added 89.58 per cent year-over-year
Silver Storm Mining (TSXV:SVRS) signed a definitive agreement with Samsung C&T Hongkong Ltd and QSSC S.A.DE C.V., both subsidiaries of Samsung C&T, for US$7 million in offtake prepayment financing to restart the past-producing La Parrilla silver mine complex in Durango, Mexico.
Silver Storm’s main priorities for the funds include working capital, rehabilitation and upgrading of the 2,000 ton-per-day mill and underground development of the land package’s three underground mines. A 2025 mineral resource estimate details 10.7 million ounces of silver equivalent indicated and 16.2 million ounces inferred.
Samsung will be granted the right to purchase 100 per cent of lead-silver and zinc concentrate produced at La Parrilla over a two-year period.
The 18-month financing will accrue interest at the 1-month secured overnight financing rate plus 4.75 per cent, but includes a six-month interest and capital repayment grace period.
Repayments must be made in equal monthly installments over a one-year period, with deductions from concentrate sales acceptable under the deal.
Samsung’s funds will be secured by a corporate guarantee, share pledge and a first ranking in the assets of La Parrilla should a default occur.
Management commentary
“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,” Greg McKenzie, president and chief executive officer of Silver Storm Mining, said in a statement. “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.”
About Silver Storm Mining
Silver Storm Mining owns advanced-stage silver projects in Durango, Mexico. Besides La Parilla, the company owns the San Diego project, one of the largest undeveloped silver assets in Mexico.
Silver Storm stock (TSXV:SVRS) last traded at C$0.23. The stock has added 89.58 per cent year-over-year.
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