Americas Gold and Silver Announces Agreement with Sprott Mining Inc. to Terminate Silver Delivery Agreement

Americas Gold and Silver has agreed to terminate the remaining 592,000‑ounce silver delivery obligation under its Silver Delivery Agreement with Sprott Mining Inc. The obligation will be extinguished in exchange for the issuance of 7,956,696 common shares at a deemed price of US$5.57 per share. The transaction eliminates over $45 million in variable future debt obligations and, at current spot prices, materially reduces future cash debt service. Eric Sprott characterized the conversion as increasing his equity exposure to one of the most prolific silver mines globally. The issuance is subject to TSX approval and a four‑month hold period.

• The most recent news is a material positive. Removing a $45 million variable silver‑stream liability simplifies the balance sheet, improves future free cash flow, and gives shareholders full leverage to silver prices.
• The share issuance (approximately 7.96 million shares) at US$5.57 represents a moderate dilution (~2.5% of the estimated 316 million shares outstanding) but at a price below the recent market ($7.89). This swap of future silver deliveries for equity is accretive to the company’s net‑asset‑value per share because it eliminates an above‑market obligation at a discount.
• The transaction aligns the interest of the largest shareholder (Sprott) entirely with common equity, removing a senior claim on production. Sprott’s comment signals long‑term conviction.
• The announcement comes against a backdrop of strong operational momentum: record Q1‑2026 silver production of 787,000 ounces, net income of $10 million, cash of $122 million, and an improving cost profile. The elimination of the silver stream further enhances earnings quality and reduces leverage to metal prices.
• The news is not a “Game‑Changer” because the stream was a legacy burden already well‑known and the share issuance is dilutive, but it is more than routine because it permanently removes a material liability and signals insider confidence.

Americas Gold and Silver Corporation is a precious and critical metals producer with operations in the USA and Mexico. The flagship is the wholly‑owned Galena Complex in Idaho’s Silver Valley, a high‑grade, long‑life underground mine producing silver, copper, and antimony. The newly acquired Crescent Mine (9 miles from Galena) is being readied for a mid‑2026 restart. In Mexico, the Cosalá Operations (San Rafael mine and the EC120 high‑grade zone) provide additional silver production. The company is capitalizing on strong silver prices and antimony’s critical‑mineral status, with a mine‑to‑finished‑product antimony processing JV under development.