Bear Creek Securityholders Overwhelmingly Approve Acquisition by Highlander Silver

The most recent news release (February 19, 2026) confirms that Bear Creek Mining (BCM) securityholders have overwhelmingly approved the plan of arrangement for the company to be acquired by Highlander Silver Corp. Over 99% of voting shareholders supported the acquisition. Crucially, voters also approved interest deferral agreements with major creditors Royal Gold and Equinox Gold. The transaction is expected to close in late February 2026, pending final court approval and regulatory clearances. This follows a period of extreme financial distress and operational underperformance at BCM's Mercedes mine.

The impact is material and transformative as it marks the end of Bear Creek as a standalone reporting issuer. - For Shareholders: Existing BCM shareholders will receive 0.1175 of a Highlander Silver share for each BCM share. Based on the recent price of $0.88, the market is pricing in the Highlander valuation. This is effectively a rescue merger. - Debt Resolution: The approval of interest deferrals is critical. Historical news reveals BCM was struggling with a "going concern" uncertainty and a working capital deficiency exceeding $90 million USD throughout 2025. - Asset Consolidation: The deal combines BCM’s world-class but unfunded Corani project with Highlander’s San Luis project, creating a Peru-focused silver powerhouse. However, BCM enters this from a position of weakness, having failed to make the Mercedes mine (Mexico) a viable cash-flow generator to fund Corani.

Bear Creek Mining has focused on its flagship Corani project in Puno, Peru, one of the world's largest undeveloped silver-lead-zinc deposits (229 Moz Ag in reserves). To fund this, they acquired the Mercedes gold-silver mine in Mexico in 2022. However, Mercedes failed to provide the necessary cash flow, plagued by "contractor underperformance," "geotechnical challenges," and a difficult transition from bulk to narrow-vein mining.