Silver Storm Commences Hot Commissioning of the La Parrilla Sulphide Circuit, Amends the Samsung Prepayment Agreement, and Secures US$5 Million Loan from First Majestic
Rhea-AI Summary
Silver Storm (TSX.V:SVRS, OTCQX:SVRSF) has started hot commissioning of the sulphide processing circuit at its 100%-owned La Parrilla Silver Mine in Durango, Mexico, using high-grade stockpiles to produce silver-rich lead and zinc concentrates as part of the mine’s operational restart.
The company, together with Samsung C&T Hong Kong and QSSC, amended their concentrate prepayment agreement by extending the grace period for initial principal and arrangement fee payments to September 2026, deferring each subsequent monthly repayment by four months and lengthening the related concentrate supply period to 30 months.
Silver Storm also secured a US$5 million non-revolving unsecured term loan from First Majestic, maturing 36 months after the July 10, 2026 closing, bearing 15% annual interest compounded quarterly, repayable in eight equal quarterly principal instalments starting 15 months after closing, and prepayable at any time without penalty.
Positive
- Hot commissioning of La Parrilla sulphide circuit underway using high-grade stockpile
- Samsung prepayment grace period extended to September 2026
- Concentrate supply period under Samsung agreement extended to 30 months
- Secured non-dilutive US$5 million unsecured term loan from First Majestic
- Loan maturity of 36 months with first principal due after 15 months
- Loan can be prepaid at any time without penalty
Negative
- Loan bears relatively high interest of 15% per annum
- Eight quarterly principal instalments of US$625,000 create fixed repayment schedule
- Loan is a related party transaction with shareholder owning about 15.69% of shares
News Explained
The lender already holds approximately 15.69% of common shares, while the closed US$5 million loan adds debt without an equity-conversion route.
Hot commissioning has begun at the sulphide circuit, meaning mineralized material is being introduced to test the plant under real operating conditions.
The circuit will initially depend on high-grade sulphide stockpiles, with underground material becoming available only after development in the Quebradillas and Rosarios areas starts supplying run-of-mine feed.
First Majestic, the lender, beneficially owns or controls approximately
Interest accrued during the first 12 months after the
News Market Reaction – SVRSF
In the Jul 14 session, SVRSF declined 4.31%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
TORONTO, ON / ACCESS Newswire / July 14, 2026 / Silver Storm Mining Ltd. ("Silver Storm" or the "Company") (TSX.V:SVRS)(OTCQX:SVRSF)(FSE:SVR) is pleased to announce the commencement of hot commissioning of the sulphide processing circuit at the Company's
Greg McKenzie, President and CEO, commented, "The start of hot commissioning of the sulphide circuit marks an important milestone for the Company. Reaching this milestone less than three years after closing the acquisition of La Parrilla is a tremendous achievement for the Silver Storm team. With the first doré pour from the oxide circuit completed recently and hot commissioning of the sulphide circuit underway, we are now in the final stages of the operational restart at La Parrilla."
As part of the hot commissioning process, the sulphide processing circuit will use mineralized material from the high-grade sulphide stockpile. The feed for the sulphide circuit will continue to be sourced from the stockpile until underground development in the Quebradillas and Rosarios areas of the mine starts to provide access to run-of-mine mineralized sulphide material. The mineralized sulphide material will be utilized to produce a silver-rich lead concentrate and a zinc concentrate.
Amendment to the Samsung C&T concentrate prepayment agreement
Silver Storm, Samsung C&T Hong Kong Ltd. ("SSHK") and QSSC, S.A. de C.V. ("QSSC", and together with SSHK, "Samsung C&T") have agreed to amend the concentrate prepayment agreement that was entered into among the parties (the "Prepayment Agreement") by extending the grace period for the initial principal and arrangement fee payments under the Prepayment Agreement to September 2026 from May 2026, with each subsequent monthly repayment deferred by a corresponding four-month period. In addition, the related concentrate supply period has also been extended by six months to thirty months. All other terms of the Prepayment Agreement remain unchanged. The deferral helps to align Silver Storm's obligations under the Prepayment Agreement more closely with the operations ramp-up plan at La Parrilla. For additional details on the Prepayment Agreement, please refer to Silver Storm's news releases dated October 10, 2025 and November 4, 2025.
Non-dilutive loan financing from First Majestic Silver Corp.
First Majestic Silver Corp. ("First Majestic") has advanced to Silver Storm a non-revolving unsecured term loan (the "Loan") totaling US
The Loan closed on July 10, 2026 (the "Closing Date") and matures 36 months following the Closing Date (the "Maturity Date") bearing interest at a rate of
Related party disclosure
First Majestic beneficially owns, or exercises control or direction over, approximately
The Company is relying on the exemptions from the minority shareholder approval requirement set out in sections 5.7(1)(a) and 5.7(1)(f) of MI 61-101, on the basis that: (i) neither the fair market value of the Loan, nor the fair market value of the consideration for the Loan, exceeds
The Loan and the terms thereof were reviewed and unanimously approved by the Company's Board of Directors. No Director of the Company is a nominee, representative or associate of First Majestic, and no Director abstained from voting on, or expressed any materially contrary view with respect to, the Loan.
In accordance with section 5.2(2) of MI 61-101, the Company did not file a material change report more than 21 days before the expected closing of the Loan as the terms of the Loan were not finalized until shortly prior to closing and the Company wished to close on an expedited basis for sound business reasons; the Company considers this shorter period to be reasonable and necessary in the circumstances.
Qualified Person
The scientific and technical information in this document has been reviewed and approved by Shane Ghouralal, P.Eng., Director, Technical Services of the Company, a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
About Silver Storm Mining Ltd.
Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango State, Mexico. Silver Storm is committed to advancing toward a potential near-term restart of its
For additional information, please contact:
Greg McKenzie, President & CEO
Ph: +1 (416) 504-2024
info@silverstorm.ca
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements:
Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of the phrase 'forward-looking information' in the Canadian Securities Administrators' National Instrument 51-102 - Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company's future plans, objectives, or goals, including words to the effect that the Company or management and Qualified Persons (in the case of technical and scientific information) expect a stated condition or result to occur. Forward-looking statements may be identified by such terms as "believes", "anticipates", "expects", "estimates", "may", "could", "would", "will", or "plan". Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management's expectations. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes but is not limited to: the Company's plans and expectations for La Parrilla; the expected timeline for underground development and the provision of run-of-mine mineralized material to the sulphide processing circuit; the timeline for the completion of the commissioning activities at La Parrilla; the intended use of proceeds of the Loan; the terms of the Loan and the Company's ability to satisfy the conditions to, and its payment obligations under, the Loan in accordance with its terms; and the Company's reliance on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 described above.
In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including, among other things, the absence of material adverse changes in market conditions, metal prices, permitting status, operating conditions, labour availability, and access to required equipment, parts, and consumables. The Company cautions that its decision to potentially restart operations at La Parrilla, and any related production decisions, are largely based on internal Company data, historical operating results, reports, and engineering assessments and are not supported by a current mineral reserve estimate prepared in accordance with NI 43-101, preliminary economic assessments, pre-feasibility studies, or feasibility studies that demonstrate economic and technical viability. As a result, there is increased uncertainty and a higher degree of economic and technical risk associated with any such production decision than would be the case if such mineral reserves estimates or studies were completed and relied upon to support a production decision. No mineral reserves have been established for La Parrilla, and mineral resources that are not reserves do not have demonstrated economic viability. The absence of mineral reserve estimates prepared in accordance with NI 43-101, preliminary economic assessments, pre-feasibility studies, or feasibility studies supporting a production decision increases the uncertainty of achieving any particular level of mineral recovery or the cost of such recovery and heightens the risks associated with developing a commercially mineable deposit. Historically, projects advanced without the support of such mineral reserves estimates and studies have experienced a significantly higher incidence of economic and technical failure. There can be no assurance that production at La Parrilla will commence as anticipated or at all, or that any anticipated production levels or operating costs will be achieved. A failure to commence production would have a material adverse effect on the Company's ability to generate revenue and cash flow to fund its operations. Similarly, a failure to achieve anticipated production costs would have a material adverse effect on the Company's cash flow and future profitability.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company's actual results, performance, or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties, and other factors set out herein.
Such forward-looking information represents management's and Qualified Persons' (in the case of technical and scientific information) best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE: Silver Storm Mining Ltd.
View the original press release on ACCESS Newswire