Canadian miner Silver Storm Mining (TSXV:SVRS,OTCQB:SVRSF) has signed a US$7 million prepayment agreement with Samsung Construction and Trading (HKEX:028260) and two of its subsidiaries to help restart production at its La Parrilla silver mining complex in Durango, Mexico.
Under the agreement announced Friday (October 10).Samsung and its subsidiaries will provide the financing through a secured prepaid facility over an 18-month period.
Under the offtake agreement, Samsung will receive 100 percent of the lead silver and zinc concentrates produced at La Parrilla over a two-year period. The financing is secured by means of a corporate guarantee, a share pledge and first-class security over La Parrilla’s assets.
Silver Storm said the facility has an interest rate of the one-month Secured Overnight Financing Rate (SOFR) plus 4.75 percent, with a six-month grace period for interest and principal repayments.
Repayments will then be made in equal monthly installments over the next twelve months, possibly offset by concentrate sales.
“The company has sufficient liquidity to complete the planned restart and rehabilitation activities at La Parrilla,” said Silver Storm President and CEO Greg McKenzie. “Samsung’s involvement as a secured buyer for the concentrates reflects the confidence of a leading industry participant in our path forward and provides Silver Storm with a new partner committed to bringing La Parrilla back into service.”
The company added that proceeds will go towards the rehabilitation and upgrades of the mill, underground development and working capital for the restart phase.
Once a prolific producer of silver and base metals, the La Parrilla complex includes a 2,000-ton-per-day mill and several underground mines.
The company expects operations to resume in the first half of 2026.
The project’s revival is seen as a major milestone for Silver Storm, which has a 100 percent interest in La Parrilla and the San Diego Project, another major undeveloped silver asset in Durango.
Samsung’s participation, meanwhile, underlines the continued interest of major industry players in securing crucial mineral supply chains.
Offtake financing agreements of this nature provide both upfront capital for miners and stable purchasing arrangements for buyers, which is an increasingly common structure in the metals markets amid rising demand for silver and other transition-related minerals.
In recent days, silver prices have reached record highs of US$51 per ounce, alongside sister metal gold which has breached the US$4,000 level. As the precious metals range continues to climb higher, more sidelined and closed projects could be brought online.
Shares of Silver Storm rose 3.30 percent to C$0.235 after Friday’s announcement.
Don’t forget to follow us @INN_bron for real-time news updates!
Securities Disclosure: I, Giann Liguid, have no direct investment interest in any company mentioned in this article.
#Silver #Storms #US7m #Samsung #deal #revive #Mexicos #Parrilla #silver