Americas Gold closes Crescent Silver acquisition

Executive Summary

• Americas Gold and Silver Corp. has closed the acquisition of Crescent Silver LLC, which owns the Crescent Silver Mine in Idaho, USA.
• The transaction consideration consists of $20 million (U.S.) in cash and approximately 11.1 million common shares of Americas.
• The acquisition is synergistic, allowing Americas to restart the fully permitted, past-producing Crescent mine to provide high-grade feed for its existing Galena complex mills, leveraging similar tetrahedrite mineralization.

Key Details

• Transaction Structure:
  • Cash Consideration: $20 million (U.S.).
  • Equity Consideration: Approximately 11.1 million common shares of Americas Gold and Silver Corp.
• Asset Details (Crescent Silver Mine):
  • Location: Shoshone County, Idaho, USA (approx. 4 miles southeast of Kellogg, 9 miles from Galena complex).
  • Status: Fully permitted, past-producing underground mine.
  • Historical Production: Over 25 million ounces of silver at an average grade of 26 oz/t (891 g/t) between 1917 and 1981.
  • Mineralization: Tetrahedrite-hosted, containing high-grade silver with significant byproduct potential from antimony and copper.
  • Historical Resources (NI 43-101, Aug 2015):
    • Measured and Indicated: 3.8 million ounces of silver.
    • Inferred: 19.1 million ounces of silver.
    • Cut-off: 10 oz/t silver.
  • 2015 PEA Highlights:
    • Designed for 250 tons/day operation.
    • Total production: ~15 million ounces silver and 5.8 million pounds copper over an 11-year life of mine.
    • Average annual production: 1.4 million ounces silver and 500,000 pounds copper.
• Strategic Rationale:
  • Crescent material is identical to Galena’s tetrahedrite material, ideal for Galena and Coeur mills.
  • Provides a supplementary high-grade source of feed for Galena complex mills.
  • Americas is fully funded for anticipated capital investments to rapidly advance Crescent into production.
  • Supports aggressive exploration drilling and production ramp-up at Galena.
• Financing Context:
  • Completion coincides with a $132 million (U.S.) oversubscribed bought deal financing closed the previous week.
  • Welcomed several new large shareholders to the register.
• Advisers:
  • Americas: Cormark Securities Inc. (Financial Adviser), Bennett Jones LLP (Legal Counsel).
  • Crescent: Red Cloud Securities Inc. (Adviser).

Notable Quotes

• Paul Andre Huet, Chairman and CEO: "The Crescent mine is a synergistic addition to our Idaho operations located just nine miles from the Galena complex. Crescent is a fully permitted past-producing mine, which we intend to restart to provide a supplementary high-grade source of feed for our Galena complex mills."
• Paul Andre Huet, Chairman and CEO: "We are also encouraged by the completion of the $132-million (U.S.) oversubscribed bought deal financing we closed last week and welcome several new large shareholders to our register. We are fully funded for the anticipated capital investments required to rapidly advance Cresent into production."