Silver Storm Announces $7.5 Million Non-Brokered Private Placement with Eric Sprott

Silver Storm Mining Ltd. announced a $7.5 million non-brokered private placement of 15,000,000 units at $0.50 per unit. The entire offering is subscribed by Eric Sprott through 2176423 Ontario Ltd., constituting a related party transaction.

Each unit consists of one common share and one-half of a common share purchase warrant. Warrant terms include an exercise price of $0.70, expiring 18 months from closing.

Net proceeds will fund surface and underground drilling programs at the La Parrilla Silver Mine Complex and general corporate/working capital. The transaction is subject to TSX Venture Exchange approval and customary conditions, with an expected closing around August 25, 2026. The company relies on exemptions from formal valuation and minority shareholder approval as the transaction value does not exceed 25% of market capitalization.

Silver Storm Mining Ltd. (SVRS) has secured financing to support working capital and drilling costs for its ongoing 15,000-meter underground exploration program at the La Parrilla project. The placement price of $0.50 aligns exactly with the recent trading range, indicating no discount to the market and minimal immediate dilution shock.

Eric Sprott’s continued investment reinforces confidence in the La Parrilla restart, though it does not represent a new strategic partnership or first-time backing. This transaction follows a clear progression of operational milestones, including the first doré pour in June 2026, first concentrate shipment in July 2026, and sulphide circuit hot commissioning in July 2026.

The news serves as a logical, expected follow-up to previous financings, including the Samsung offtake, First Majestic loan, and the September 2025 bought deal. It does not introduce unexpected catalysts or structural changes, representing routine operational funding rather than a market-moving event.

Silver Storm Mining Ltd. (SVRS) is focused on the 100%-owned La Parrilla Silver Mine Complex in Durango, Mexico. La Parrilla is a past-producing mine that operated from 2006 to 2019, with historical production of over 34 moz Ag.Eq and an average annual output of approximately 3.52 moz silver equivalent.

The company is executing a restart plan, having successfully completed the oxide circuit commissioning and first doré pour in June 2026. The sulphide flotation circuit is being expanded from 1,000 tpd to 1,250 tpd to match the sulphide-dominant mineralization profile. The company also holds the San Diego Project, an advanced exploration asset in the prolific Velardeña Mining District, though La Parrilla remains the near-term revenue driver.