Silver Storm completes drawdown of $7M (U.S.) facility

Executive Summary

• Silver Storm Mining Ltd. has fully drawn down the entire $7.0 million (U.S.) prepaid offtake financing facility with Samsung C&T Hongkong Ltd. and QSSC S.A. de C.V.
• The facility provides capital for mill rehabilitation, underground development, and general working capital at the La Parrilla silver mine complex.
• The agreement grants Samsung the right to purchase 100% of the lead-silver and zinc concentrates produced at La Parrilla for a two-year period.

Key Details

• Transaction Amount: $7.0 million (U.S.) fully drawn under the prepaid offtake facility.
• Counterparties: Samsung C&T Hongkong Ltd. and QSSC S.A. de C.V. (subsidiaries of Samsung C&T).
• Use of Proceeds:
  1. Rehabilitation and preparation activities at the La Parrilla silver mine complex (specifically mill rehabilitation/upgrading and underground development).
  2. General corporate and working capital purposes.
• Repayment Terms:
  • Repayments made in equal monthly installments over a 12-month period.
  • Commencement of repayments: May 2026.
  • Maturity Date: April 30, 2027.
  • Repayment method: May be made as deductions from the sale of concentrates.
• Interest Rate: One-month Secured Overnight Financing Rate (SOFR) plus 4.75%.
• Fees: A set-up fee of 1.25% of the funded amount was paid upon drawdown.
• Additional Terms:
  • No finders' fees, bonus shares, or bonus warrants are payable.
  • Samsung C&T is at arm's length and does not own any other securities of the company.
  • Samsung holds the right to purchase 100% of lead-silver concentrates and zinc concentrates produced at La Parrilla for a period of two years.

Notable Quotes

• "This is a significant milestone for Silver Storm, providing the financial flexibility to execute our growth plans and deliver value to shareholders. We are pleased to strengthen our partnership with Samsung C&T, a global leader in commodity trading." — Greg McKenzie, President and CEO