Silver Storm Mining (TSXV: SVRS) has secured an offtake financing agreement that is expected to assist in the restart of their La Parrilla operations in Mexico. The offtake arrangement, entered into with two subsidiaries of Samsung C&T, is for 100% of the lead-silver and zinc concentrate produced at the the mine over a two year period.
“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,” commented Greg McKenzie, CEO of Silver Storm.
The facility amounts to US$7.0 million in secured prepaid financing and has an 18 month term, with an interest rate that amounts to the 1-month SOFR plus 4.75%. Repayment of the facility is to be made in six equal monthly installments over a 12 month period following a six month interest and capital repayment grace period, with repayment intended to take the form of concentrate sales.
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Silver Storm has provided a corporate guarantee and share pledge as part of the security offered on the facility, along with first ranking security in the assets of La Parrilla.
Proceeds from the arrangement are expected to be used for mill rehabilitation and upgrading, underground development and working capital for La Parrilla.
The La Parrilla Complex, which last operated in 2019, is expected to see operations restart in the first half of 2026. The operation consists of five underground mines and a 2,000 tonne per day processing facility.
Silver Storm Mining last traded at $0.2275 on the TSX Venture.
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