Americas Gold and Silver Announces Agreement with Affiliate of Royal Gold to Settle Fixed Gold Delivery Obligation
Americas Gold and Silver (NYSE American: USAS) agreed with International Royalty Corporation, an affiliate of Royal Gold, to settle its remaining obligation to deliver 8,861 oz of gold due from June 2026 to December 2027.
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Rhea-AI Summary
Americas Gold and Silver (NYSE American: USAS) agreed with International Royalty Corporation, an affiliate of Royal Gold, to settle its remaining obligation to deliver 8,861 oz of gold due from June 2026 to December 2027.
The obligation will be settled through immediate delivery of 5,000 oz of gold plus 2,652,532 common shares at a deemed price of US$5.86 per share. According to the company, unwinding gold price protection instruments provided about US$7 million, helping fund the gold delivery. The transaction removes over US$40 million of variable, gold price linked future debt under the Precious Metals Delivery Agreement; combined with a separate silver delivery termination, more than US$85 million in variable future obligations have been eliminated.
Positive
- Eliminates over US$40 million in variable gold price linked future debt
- Removes more than US$85 million in total variable future delivery obligations including prior silver deal
- Settles 8,861 oz obligation with 5,000 oz cash delivery plus shares, reducing commodity exposure
- Gold price protection unwind generates approximately US$7 million to help fund settlement
Negative
- Issuance of 2,652,532 new common shares creates equity dilution for existing shareholders
- Company must fund immediate delivery of 5,000 oz of gold using hedge proceeds and cash on hand
- Share issuance remains subject to TSX approval and a four-month hold period
Details
News Market Reaction – USAS
On May 26, the day this news came out, USAS closed 1.03% above the previous close.
Data tracked by StockTitan Argus for the May 26 session.
Key Figures
- Remaining gold obligation
- 8,861 ounces
- Gold to be delivered to IRC between June 2026 and December 2027 under prior agreement
- Gold delivered in settlement
- 5,000 ounces
- Immediate delivery to settle remaining fixed gold delivery obligation
- Shares issued to IRC
- 2,652,532 shares
- Common shares issued at a deemed price of US$5.86 per share, subject to TSX approval
- Deemed share price
- US$5.86 per share
- Pricing for 2,652,532 common shares issued to IRC
- Gold hedge-related liability
- US$7 million
- Liability associated with in-the-money gold price protection instruments
- Gold-linked debt removed
- over $40 million
- Variable future debt obligations tied to gold price under Precious Metals Delivery Agreement
- Total variable debt eliminated
- over US$85 million
- Combined removal of gold and previously announced silver delivery obligations
- Current share price
- $5.80
- Pre-news price compared to deemed issue price of US$5.86 per share
Historical Context
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Equity-for-stream swap removing over US$45M in variable silver-linked obligations.
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Record silver output, revenue of $67.8M, and swing to net income and EBITDA.
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Scheduling of May 15 conference call to discuss Q1 2026 financial results.
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Fourth major Galena discovery with multiple high-grade silver-copper-antimony veins.
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Update on major growth and optimization projects at the Galena Complex for 2026.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
precious metals delivery and purchase agreement financial
gold price protection instruments financial
variable future debt obligations financial
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Toronto, Ontario--(Newsfile Corp. - May 26, 2026) - Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) ("Americas" or the "Company"), a growing North American precious metals and antimony producer is pleased to announce that it has reached an agreement ("the Agreement") with International Royalty Corporation ("IRC"), an affiliate of Royal Gold, Inc. to settle its remaining obligation to deliver a total of 8,861 ounces of gold to IRC over the period between June 2026 and December 2027 under the existing Precious Metals Delivery and Purchase Agreement dated April 3, 2019, as amended ("Precious Metals Delivery Agreement"). The Precious Metals Delivery Agreement was originally entered into with Sandstorm Gold Ltd. as part of the Relief Canyon Transaction in 2019 (See Americas news release dated April 3, 2019), prior to Sandstorm Gold Ltd.'s acquisition by IRC in October 2025.
Under the terms of this transaction, the Company's obligation to deliver 8,861 ounces of gold will be settled in exchange for immediate delivery by the Company of 5,000 ounces of gold and 2,652,532 common shares of the Company issued at a deemed price of US
Paul Andre Huet, Chairman and CEO, commented: "Following on Americas announcement of the termination of the silver delivery obligation to Sprott Inc. (see Americas news release dated May 22, 2026), today's announcement marks yet another significant step in further strengthening our balance sheet and overall business.
The settlement of the fixed gold delivery obligation under the Precious Metals Delivery Agreement with IRC removes over
By removing this gold price linked obligation, as well as the previously announced agreement to terminate the Sprott Silver Deliver Agreement, we have now eliminated over US
About Americas Gold and Silver Corporation
Americas Gold and Silver is a rapidly growing North American mining company producing silver, copper, lead, and antimony from high-grade operations in the U.S. and Mexico. In December 2024, Americas acquired
For more information:
Miranda Powell
Manager, Communications
M: +1-775-771-8832
E: ir@americas-gold.com
W: americas-gold.com
Cautionary Statement on Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, Americas' expectations, intentions, plans, assumptions, and beliefs with respect to anticipated results of the transactions contemplated herein. Often, but not always, forward-looking information can be identified by forward-looking words such as "anticipate," "believe," "expect," "goal," "plan," "intend," "potential," "estimate," "may," "assume," and "will" or similar words suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions, or statements about future events or performance. Forward-looking information is based on the opinions and estimates of Americas as of the date such information is provided and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of Americas to be materially different from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to the risk factors relating to the Company found under the heading "Risk Factors" in the Company's most recent Annual Information or the Company's MD&A; interpretations or reinterpretations of geologic information; unfavorable exploration results; inability to obtain permits required for future exploration, development, or production; general economic conditions and conditions affecting the mining industry; the uncertainty of regulatory requirements and approvals; potential litigation; fluctuating mineral and commodity prices; the ability to obtain necessary future financing on acceptable terms or at all; risks associated with the mining industry generally, such as economic factors (including future commodity prices, currency fluctuations, and energy prices), ground conditions, failure of plant, equipment, processes, and transportation services to operate as anticipated, environmental risks, government regulation, actual results of current exploration and production activities, possible variations in grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, labor relations; and risks related to changing global economic conditions and market volatility. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated, or intended. Readers are cautioned not to place undue reliance on such information. Additional information regarding the factors that may cause actual results to differ materially from this forward-looking information is available in Americas' filings with the Canadian Securities Administrators on SEDAR+ and with the SEC. Americas does not undertake any obligation to update publicly or otherwise revise any forward-looking information whether as a result of new information, future events, or other such factors which affect this information, except as required by law. Americas does not give any assurance (1) that Americas will achieve its expectations, or (2) concerning the result or timing thereof. All subsequent written and oral forward-looking information concerning Americas are expressly qualified in their entirety by the cautionary statements above.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/298825
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