Silver Bullet Mines Enters Strategic Financial Agreements

Rhea-AI Summary

Silver Bullet Mines (SBMCF) has secured strategic financing through agreements with three accredited investors to acquire 3,836,000 Units at $0.18 per Unit, raising gross proceeds of $690,480. Each Unit includes one common share and a three-year warrant exercisable at $0.22. The company also announced the conversion of previously issued $940,000 convertible debentures to equity. Additionally, SBMI plans to issue 339,838 shares at $0.16 per share for debenture interest payments. The funds will support working capital, increase capacity in Arizona and Idaho operations, and address tariff-related costs. Operationally, SBMI has completed mill adjustments to process Super Champ material and is preparing to ship a bulk batch of concentrate for buyer testing, with regular production shipments expected to follow successful testing.

Positive

• Strategic investment at $0.18 per Unit represents a substantial premium to current market price
• Complete conversion of $940,000 convertible debentures to equity shows investor confidence
• Mill adjustments completed to meet buyer specifications for Super Champ material concentrate
• Secured $690,480 in new funding for working capital and capacity expansion

Negative

• Delays in finalizing orders with potential concentrate purchasers
• Increased costs due to current tariff situation affecting operations
• Further share dilution through new Unit issuance and debenture interest payments

Burlington, Ontario--(Newsfile Corp. - May 13, 2025) - Silver Bullet Mines Corp. (TSXV: SBMI) (OTCQB: SBMCF) ('SBMI' or 'the Company') announces it has entered into a strategic agreement with each of three accredited investors to collectively acquire 3,836,000 Units at a purchase price of 18 cents per Unit (a substantial premium to the current market), with each Unit consisting of one common share and one non-transferable common share purchase warrant exercisable at 22 cents for a three year term. The Units will be subject to a four month hold period. The gross proceeds from these agreements is $690,480.00.

Any other person who may want to enter into such an agreement on the same terms as above with the Company is encouraged to immediately contact SBMI at the contact information below. Closing should take place in the immediate future subject to regulatory approval.

Each of the three investors mentioned above is already a significant shareholder in the Company and sees this as a key opportunity to accelerate SBMI's growth. The Company believes this type of investment provides stable long-term support for SBMI and its capital structure.

It has taken longer than expected to finalize orders with potential purchasers of the Company's concentrate made from material taken from the Super Champ and processed at SBMI's mill in Arizona. The funds referred to above will be used to fund working capital, increase capacity in both Arizona and Idaho, and offset some of the increased costs due to the current tariff situation.

Operationally, the Company advises it has completed the necessary minor adjustments to the mill to allow it to process Super Champ material into concentrate having the specifications sought by a certain buyer. SBMI is processing and intends to soon ship a bulk batch of such concentrate to this buyer for a test run through its refinery. Upon completion of that run by the buyer, its final testing and its report back to SBMI, regular production shipments should commence.

SBMI is still working on final agreements with other potential buyers. After completing agreements with various buyers, SBMI will be able to prioritize processing of Super Champ material for each buyer.

On May 14, 2024 the Company announced it had closed on $940,000 by way of convertible debentures. SBMI now announces all of such debentures have been converted to equity, which in management's opinion is a further display of investor confidence in the Company's business plan.

Finally, SBMI announces it intends to issue, subject to regulatory approval, 339,838 shares at sixteen cents per share, representing interest on other debentures equal to $54,375.74.

For further information:

John Carter
Silver Bullet Mines Corp., CEO
cartera@sympatico.ca
+1 (905) 302-3843

Peter M. Clausi
Silver Bullet Mines Corp., VP Capital Markets
pclausi@brantcapital.ca
+1 (416) 890-1232

Cautionary and Forward-Looking Statements

This news release contains certain statements that may constitute forward-looking statements as they relate to SBMI and its subsidiaries. Forward-looking statements are not historical facts but represent management's current expectation of future events, and can be identified by words such as "believe", "expects", "will", "intends", "plans", "projects", "anticipates", "estimates", "continues" and similar expressions. Although management believes that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that they will prove to be correct.

By their nature, forward-looking statements include assumptions and are subject to inherent risks and uncertainties that could cause actual future results, conditions, actions or events to differ materially from those in the forward-looking statements. If and when forward-looking statements are set out in this new release, SBMI will also set out the material risk factors or assumptions used to develop the forward-looking statements. Except as expressly required by applicable securities laws, SBMI assumes no obligation to update or revise any forward-looking statements. The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: the impact of SARS CoV-2 or any other global virus; reliance on key personnel; the thoroughness of its QA/QA procedures; the continuity of the global supply chain for materials for SBMI to use in the production and processing of mineralized material; the results of exploration and development activities; shareholder and regulatory approvals; activities and attitudes of communities local to the location of the SBMI's properties; risks of future legal proceedings; income tax matters; fires, floods and other natural phenomena; the rate of inflation; availability and terms of financing; distribution of securities; commodities pricing; currency movements, especially as between the USD and CDN; effect of market interest rates on price of securities; and, potential dilution. SARS CoV-2 and other potential global pathogens create risks that at this time are immeasurable and impossible to define.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/251872

FAQ

What is the size and terms of SBMCF's new strategic financing agreement?

SBMCF secured agreements for 3,836,000 Units at $0.18 per Unit, raising $690,480. Each Unit includes one common share and a three-year warrant exercisable at $0.22.

How will Silver Bullet Mines use the proceeds from the $690,480 financing?

The funds will be used for working capital, increasing capacity in Arizona and Idaho operations, and offsetting increased costs due to current tariff situation.

What is the status of SBMCF's convertible debentures from May 2024?

All $940,000 of convertible debentures issued in May 2024 have been converted to equity, demonstrating investor confidence in the company.

What progress has Silver Bullet Mines made with its Super Champ material processing?

SBMI has completed mill adjustments to process Super Champ material to meet buyer specifications and is preparing to ship a bulk batch for buyer testing before regular production shipments begin.

How many additional shares will SBMCF issue for debenture interest payments?

SBMI plans to issue 339,838 shares at $0.16 per share, representing debenture interest payments totaling $54,375.74.