Silver Hammer options Fahey Group property

Executive Summary

• Silver Hammer Mining Corp. has entered into an option agreement to acquire a 100% legal and beneficial interest in the Fahey Group property, a 360-acre silver project located in the strategic Silver Belt of the Coeur d'Alene mining district in Idaho.
• The transaction involves an initial cash payment of $50,000 USD and the issuance of $450,000 CAD in common shares, with additional milestone payments and exploration expenditure requirements to fully earn the interest.
• Upon exercise of the option, Silver Hammer will grant Fahey a 2.0% Net Smelter Return (NSR) royalty, reducible to 1.5% upon a $1 million USD payment, plus a $1.5 million USD milestone payment upon commencement of commercial production.

Key Details

• Target Asset: Fahey Group property, consisting of 360 acres covered by 18 unpatented U.S. lode claims.
• Location: Silver Belt portion of the Coeur d'Alene mining district, Idaho. Situated between the operating Galena mine and the historic Sunshine mine.
• Geological Context: Underlain by the favorable Revett formation quartzite. More than 20 veins identified on the property. The district has produced approximately 1.18 billion ounces of silver historically.
• Initial Consideration:
  • $50,000 USD total in cash ($25,000 within 3 business days; $25,000 by June 30, 2026).
  • $450,000 CAD total in common shares, issued in installments:
    • $50,000 CAD by Dec 31, 2026.
    • $75,000 CAD by Dec 31, 2027.
    • $75,000 CAD by Dec 31, 2028.
    • $125,000 CAD by Dec 31, 2029.
    • $125,000 CAD by Dec 31, 2030.
• Exploration Requirements: Aggregate minimum of $1.5 million CAD in exploration expenditures:
  • Minimum $200,000 CAD by Dec 31, 2027.
  • Further $1.3 million CAD by Dec 31, 2030.
  • Excess expenditures from earlier periods may be credited to later commitments.
• Extension Option: Company may extend the final share payment and exploration deadlines by one year via issuance of $50,000 CAD in consideration shares.
• Share Pricing: Consideration shares priced at the Volume-Weighted Average Price (VWAP) of the company's shares on the Canadian Securities Exchange (CSE) for the 20 trading days prior to issuance. Shortfalls if deemed price is <5 CAD cents must be paid in cash. Company may elect to pay all consideration in cash.
• Royalty Terms:
  • 2.0% NSR granted to Fahey upon exercise of option.
  • Royalty reduces to 1.5% NSR upon payment of $1 million USD to Fahey.
• Milestone Payment: $1.5 million USD payable to Fahey within 30 days of achieving commercial production (payable in cash, shares, or combination).
• Regulatory/Corporate: Subject to CSE and corporate approvals. Arm's-length transaction. No changes to board or management. No finders' fees. Securities subject to 4-month statutory hold.

Notable Quotes

• "The company is extremely pleased to be able to secure such a strategic landholding surrounded by senior silver producers and explorers in one of the most sought-after locations in the Silver Valley. We are grateful to the Fahey Group to have confidence in our experienced exploration team," commented Peter A. Ball, president and chief executive officer.
• "It is not often a junior is able to have the opportunity to acquire such an exciting silver project that has remained relatively underexplored and more notably surrounded by close to one billion ounces of silver that have been discovered, developed and mined over the past 100 years."