Silver Elephant Mining Stock Price, News & Analysis

Silver Elephant Mining Corp (OTCQB: SILEF), also referred to as "Silver Elephant" or the "Company" in its public disclosures, is a mining company whose shares trade on the OTCQB market in the United States under the symbol SILEF and on the Toronto Stock Exchange under the symbol ELEF. The company is associated with the mining sector and operates projects that include the Apuradita Paca Mining Project ("Apuradita") in Bolivia, where it has reported silver-bearing and lead-bearing mineralized material.

According to the company’s news releases, Silver Elephant has been engaged in toll milling of silver-bearing material from Apuradita and has executed a concentrate off-take agreement with a major international buyer for the purchase of metals concentrates from this project. The company has announced the completion of its first silver-lead concentrate sale from Apuradita, describing this as an important milestone that demonstrates the marketability of the project’s metals concentrate product.

Operations and Apuradita Project

Silver Elephant’s disclosures describe ongoing mining operations at the Apuradita Paca Mining Project in Bolivia. The company reports delivering silver-bearing material to a toll-milling facility and targeting production of silver-bearing mineralized material on a monthly basis. It has internally estimated an initial campaign of mineralized feed and has outlined the use of shrinkage stoping as the mining method for sulphide mineralized material at Apuradita.

The company has provided technical details about Apuradita in its news releases, including information on sulphide mineralized material being exploited using shrinkage stoping, with two stopes designed with specific dimensions and targeted extraction rates. Based on diamond drilling and internal geological modeling, Silver Elephant has reported calculated average grades for extracted and sorted sulphide material, and has identified multiple high-grade areas within the Apuradita tunnel where it is developing additional mining faces through crosscuts and drifts.

In parallel with underground sulphide extraction, Silver Elephant has indicated that it is exploring near-surface oxide mineralized layers within the broader Apuradita project that are potentially suitable for open-pit mining. The company has stated that it is in sales discussions with third-party processing facilities that could potentially purchase silver oxide materials from Apuradita.

Concentrate Sales and Toll Milling

The company has reported that toll milling of silver-bearing material from Apuradita has commenced, with material delivered to a toll-milling facility. It has also disclosed the execution of a concentrate off-take agreement with a major international buyer for the purchase of Apuradita metals concentrates, and has announced the completion of its first silver-lead concentrate shipment. Assay results for this shipment were reported in a news release, including concentrate grades for silver and lead that the company states are consistent with its internal metallurgical forecasts.

These operational updates highlight Silver Elephant’s focus on moving material from mining through toll milling to concentrate sales under an off-take arrangement, and they provide insight into the company’s approach to advancing the Apuradita project.

Corporate Actions and Financing

Silver Elephant Mining Corp has undertaken several non-brokered private placements, as disclosed in multiple news releases. The company has announced private placements to raise gross proceeds through the sale of units, with each unit typically consisting of one common share of the company and one share purchase warrant. The warrants entitle the holder to purchase additional common shares at specified exercise prices for defined periods.

In these financings, the company has described the participation of directors, officers, and significant shareholders, and has characterized such participation as related party transactions within the meaning of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). Silver Elephant has stated that it relied on exemptions from formal valuation and minority shareholder approval requirements under sections 5.5(a) and 5.7(a) of MI 61-101, on the basis that the related parties’ participation did not exceed 25% of the fair market value of the company’s market capitalization. The company has also indicated that securities issued under these private placements are subject to regulatory hold periods and that proceeds are expected to be used for general corporate or working capital purposes.

Some private placements have involved finder’s fees in the form of finder’s units, each consisting of one share and one non-transferable share purchase warrant, as disclosed in the company’s news releases.

Corporate Governance and Shareholder Matters

Silver Elephant has reported on outcomes of its Annual General & Special Meeting of shareholders. In a news release, the company stated that shareholders approved all resolutions put forward at the meeting, including setting the number of directors, electing director nominees, appointing auditors, and approving certain amendments to the company’s articles. Shareholders also approved resolutions related to warrant exercise price amendments for warrants issued to insiders and the removal of a warrant exercise limitation applicable to a 10% shareholder, as described in the company’s information circular referenced in the news release.

The company has also announced changes in its legal leadership, including the appointment of a Vice President Legal and the planned transition of its Chief Legal Officer to a consulting role. These disclosures provide insight into Silver Elephant’s corporate governance and legal oversight framework.

Technical Oversight and QA/QC

Silver Elephant’s technical disclosures related to Apuradita indicate that the technical contents of certain news releases have been prepared under the supervision of a qualified person as defined by National Instrument 43-101. The company describes its sample preparation and analysis procedures, including sending samples to ALS Global Laboratories in Oruro, Bolivia for preparation and then to ALS laboratories in Lima, Peru for analysis. It notes the use of specific analytical methods, including intermediate level four acid digestion and fire assay with gravimetric finish for silver over-limit determinations.

The company states that ALS laboratories’ sample management systems meet requirements of international standards ISO/IEC 17025:2017 and ISO 9001:2015, and that ALS geochemical hub laboratories are accredited to ISO/IEC 17025:2017 for specific analytical procedures. Silver Elephant also describes its core handling practices, including halving diamond drill core, preserving half for future reference, conducting geotechnical analysis, photographing core, and detailed geological logging prior to sampling.

Regulatory and Legal Matters

In addition to its financing activities, Silver Elephant has disclosed involvement in arbitration proceedings. The company has reported an arbitration case against Andean Precious Metals Corp. relating to an additional consideration payment under a Master Services Agreement and Sales and Purchase Agreement executed on September 11, 2023. According to the company’s news release, the additional consideration became payable after certain silver price conditions were met, and Silver Elephant terminated the agreements and commenced arbitration after Andean did not remit payment within the contractual cure period.

The company has described the arbitration process, including the dates of the hearing held in Vancouver, British Columbia, and its request for an award covering the additional consideration, accrued interest, and legal costs. Silver Elephant has stated that it maintains the position that all conditions triggering the additional consideration payment have been met, and has outlined procedural steps requested by the arbitrator, such as closing and costs submissions.

Geographic Focus and Community Relations

Silver Elephant’s news releases identify Vancouver, British Columbia as the location from which its announcements are issued, and they describe operations at the Apuradita Paca Mining Project in Bolivia. The company has expressed appreciation for the support of local communities in connection with its operations at Apuradita, noting that these operations continue despite challenging macroeconomic conditions in Bolivia.

Stock Listings and Investor Focus

For investors, Silver Elephant Mining Corp is accessible through multiple markets, with its shares trading on the Toronto Stock Exchange under the symbol ELEF, on the OTCQB market in the United States under the symbol SILEF, and on the Frankfurt Stock Exchange under the symbol 1P2, as referenced in the company’s news releases. The company’s public disclosures emphasize its focus on advancing its project portfolio, including Apuradita, through a combination of mining operations, toll milling, concentrate sales, and corporate financing activities.