Silver Storm Completes Drawdown of US$7.0M Prepaid Offtake Facility With Samsung C&T

On November 4, 2025, Silver Storm Mining announced that it has completed the full drawdown of its US$7.0 million secured prepaid offtake financing facility with Samsung C&T Hongkong Ltd. The funds are designated for the rehabilitation and preparation of the La Parrilla Silver Mine Complex, including mill upgrades, underground development, and general working capital.

This news is the execution of a previously announced agreement. On October 10, 2025, Silver Storm announced it had entered into the definitive agreement for this US$7.0 million facility. Therefore, the drawdown of funds is an expected and routine operational step, not new material information for the market.

The impact is routinely positive as it confirms the capital is now in the company's treasury, providing the stated liquidity to advance the restart of the La Parrilla mine. This follows a series of significant equity financings throughout 2025. The company now appears fully funded for its initial rehabilitation and restart plan.

However, it's crucial to note that this is a debt facility with an 18-month term and an interest rate of SOFR + 4.75%. Repayments are scheduled to begin after a six-month grace period. This will add to the company's cash burn before the mine is expected to generate revenue, which is targeted for Q2 2026. While securing the funds is a positive milestone, the addition of debt increases the company's financial risk profile. The market's positive reaction would have largely occurred on the initial announcement in October, not on this subsequent confirmation of drawdown.

Silver Storm Mining Ltd. is a Canadian mining company focused on advancing its 100%-owned La Parrilla Silver Mine Complex in Durango, Mexico, back into production. La Parrilla is a past-producing underground mining operation with a 2,000 tonne-per-day mill that was placed on care and maintenance in September 2019. The company's strategy is to rehabilitate and upgrade the existing infrastructure to restart operations, with a target of Q2 2026. The company also holds the advanced-stage San Diego silver project in Mexico. Both properties are subject to 2% Net Smelter Return (NSR) royalties.