Silver Storm obtains $7M (U.S.) financing for restart

Executive Summary

• Silver Storm Mining Ltd. entered into a definitive US$7 million prepaid financing and offtake agreement with Samsung C&T Hongkong Ltd. and QSSC S.A.DE C.V. to restart the La Parrilla silver‑lead‑zinc mine complex in Durango, Mexico.
• The facility carries interest at SOFR + 4.75% and is secured by a corporate guarantee, share pledge and first‑ranking lien on La Parrilla assets; repayment over 12 months after a six‑month grace period.
• Samsung receives an exclusive two‑year offtake right to 100 % of lead‑silver and zinc concentrate produced at La Parrilla; drawdowns are subject to customary conditions precedent.

Key Details

• Financing amount: US$7.0 million prepaid facility, available for 18 months.
• Interest rate: One‑month SOFR + 4.75 percentage points.
• Repayment terms: Six‑month interest and principal grace period; thereafter equal monthly instalments over a 12‑month period, with repayments optionally deducted from concentrate sales.
• Security package: Corporate guarantee, share pledge, and first‑ranking security on La Parrilla assets.
• Offtake rights: Samsung C&T entitled to purchase 100 % of lead‑silver concentrate and zinc concentrate produced at La Parrilla for a two‑year term.
• Use of proceeds: Mill rehabilitation and upgrade, underground development, and working capital for the restart of La Parrilla operations.
• Cancellation of stock options: 500,000 advisor stock options previously announced (Oct 2 2025) are cancelled and will not be issued.

Notable Quotes

“The agreement with Samsung represents a key step in our strategic vision of transitioning the company into an operating entity…Samsung's involvement as a guaranteed purchaser for the concentrates reflects the confidence of a leading industry participant in our path forward.” – Greg McKenzie, President & CEO.