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Business Wire
03-06-2025
- Business
- Business Wire
Americas Gold and Silver Announces Transformational US$100 Million Debt Financing and Secures Multi-Metal Offtake Agreement for Galena Concentrates
TORONTO--(BUSINESS WIRE)--Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) ('Americas' or the 'Company'), a growing North American precious metals producer, is pleased to announce that it has arranged a US$100 million of senior secured debt facility ("Term Loan Facility') to be provided by a third party to be used primarily to fund growth and development capital spending at the Galena Complex. The US$100 million Term Loan Facility consists of three tranches: a term loan with proceeds of US$50 million that will be advanced at closing, and two additional tranches of US$25 million. Americas is also pleased to announce it has entered into an offtake agreement (the 'Offtake Agreement') with Ocean Partners USA Inc. ('Ocean Partners') for treatment of up to 100% of the concentrates from the Company's Galena Complex at Teck Resources Limited's ('Teck') Trail Operations in Trail British Columbia, one of the world's largest fully-integrated zinc, lead and critical metals complexes. As a condition to closing the Term Loan Facility and in conjunction with the Offtake Agreement, Ocean Partners will subscribe for 16.8 million common shares in the Company at C$0.95 per common share, representing a premium of approximately 14% to the USA 20-day VWAP for gross proceeds of US$11.5 million (the 'Private Placement'). Paul Andre Huet, Chairman and CEO, commented: 'Today's announcement represents a major milestone for Americas Gold and Silver shareholders. The culmination of months of work, the $100 million in non-dilutive debt financing will allow us to both aggressively pursue our capital development spending at the Galena Complex and further strengthen our balance sheet. The debt financing is critical to our major growth plans at Galena which include the reintroduction of Long Hole Stoping and associated underground development, continued major equipment purchases and upgrades to the No. 3 shaft. The projects to be executed are driven by the results of our materials handling trade off studies completed over the course of the year to date, all focused on boosting productivity underground and efficiency in our hoisting schedules. Alongside our lender, we carefully structured the Term Loan Facility into three tranches to match the pace of our capital plans over the growth period. Regarding our future offtake strategy, I am very pleased to have closed a strong agreement at very competitive terms with Ocean Partners for treatment of up to 100% the precious and base metals concentrate produced from our Galena Complex at Teck's Trail Operations. The Agreement reinforces a robust strategic relationship to recover a wide variety of metals from the polymetallic concentrates produced at our operations at a world class facility in close geographic proximity to our operations. Guaranteeing processing capacity at a nearby smelter is critical as the Company executes its plans to significantly increase silver and by-product metal production over the next several years. We are also very encouraged that as part of the Agreement, Ocean Partners have elected to satisfy the Term Loan Facility pre-financing condition via an US$11.5 million equity investment into Americas at a significant 14% premium to our share price. This investment by Ocean Partners is a testament to their confidence in our growth initiatives and further aligns us in our overarching corporate objective of building shareholder value. The proceeds of the equity investment will be used immediately to continue the strong momentum of our impactful work underway at Galena. Overall, our growth strategy is firmly on track with a robust balance sheet and available cash to underpin the capital investment required to unlock the full potential of the Galena Complex. Our first 150 days at the helm of Americas has identified some quick wins and is delivering several outstanding productivity improvements already - we look forward to continuing this momentum with the investment made by Ocean Partners and the Term Loan provided by the third party.' Brent Omland, CEO of Ocean Partners commented: 'We are very pleased to continue our strong partnership with Americas and Teck's Trail Operations and to facilitate the delivery of Galena Complex concentrates to what we view as the optimal receiver. We are extremely impressed by the focus and diligence of Paul and his Americas team and we are very excited to participate in the value creation from the expansion and optimization of operations at the Galena Complex over the coming months and years.' Ian Anderson, Chief Commercial Officer of Teck commented: 'This arrangement will help strengthen North America's critical minerals supply chain by securing high-quality ore concentrate feed for Teck's Trail Operations from Idaho's Silver Valley'. Term Loan Facility The Term Loan Facility consists of: A term loan with proceeds of US$50 million to be advanced at closing. The loan will be subject to an interest rate of SOFR (4% floor) plus 6% and will mature 60 months following the closing date. Principal will amortize over the term of the loan, with principal repayments commencing one year after the closing date and payable quarterly thereafter. Two additional US$25 million tranches that will be available to AGS upon the achievement of certain conditions precedent. The first such tranche will be subject to an interest rate of SOFR (4% floor) plus 6% after funding. The second tranche will be subject to an interest rate of SOFR (4% floor) plus 4% after funding. Principal will amortize over the term of the loan with principal repayments commencing one year after the closing date and payable quarterly thereafter. The lender will hold senior security over all the Company's assets and undertakings other than those relating to Americas Cosalá Operations located in Sinaloa, Mexico and its Relief Canyon Project located in Nevada USA, which are secured in priority to the lender by Trafigura and Sandstorm, respectively for the duration of those agreements. The Term Loan Facility is subject to an agreed OID and other fees that are customary for a facility of this nature. Closing of the transaction is subject to customary conditions precedent, with funding of the US$50 million of term loan proceeds expected to occur during the month of June. Private Placement As part of the Agreement, Ocean Partners has agreed to acquire 16.8 million common shares of Americas at a price of C$0.95 per share on a non-brokered private placement (the 'Private Placement') basis for a total consideration of US$11.5 million (C$15.8 million). The Private Placement is expected to close on or about June 4, 2025 and is subject to applicable regulatory approvals, including approvals from the Toronto Stock Exchange and NYSE American Exchange. About Americas Gold and Silver Corporation Americas Gold and Silver is a growing precious metals mining company with multiple assets in North America. The Company owns and operates the Cosalá Operations in Sinaloa, Mexico. In December 2024, the Company acquired 100% ownership in the Galena Complex (located in Idaho, USA) in a transaction with Sprott and a Paul Huet-led management team, further strengthening its position as a leading silver producer. Sprott is now the largest shareholder in the company, holding a ~20% interest. With these strategically positioned assets, Americas Gold and Silver is focused on becoming one of the top North American silver-focused producers with an objective of over 80% of its revenue generated from silver by the end of 2025. 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, among other things, the potential to complete any or all of the applicable financings referenced in this release in the manner described including the Term Loan Facility on its terms, and are subject to the risks and uncertainties outlined below. 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: 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.
National Post
15-05-2025
- Business
- National Post
Metallurgical Testwork at Galena Complex Demonstrates Over 90% Antimony Recovery Supporting Potential Near-Term Primary Antimony Production in the United States
Article content TORONTO — Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) ('Americas' or the 'Company'), a growing North American precious metals producer is pleased to announce promising results from recent metallurgical testing at its Galena Complex in Idaho, confirming high recoveries of antimony alongside strong silver and copper recoveries from ore currently being processed. Article content Article content Paul Andre Huet, Chairman and CEO, commented: 'I am very excited that results of our test work have successfully demonstrated the potential to recover antimony – which is designated as a critical mineral in the United States – from ore currently being mined at our Galena Complex through a specialized flotation circuit. This breakthrough could significantly enhance value for Americas and its shareholders, as we currently receive no revenue, and were previously penalized for, the antimony in concentrates already produced. Furthermore, we're now well positioned as an early mover with the potential to become the only antimony producer in the United States, in the near-term. Article content 'Our technical team is moving forward with detailed technical and trade-off studies to develop a plan to rapidly capitalize on the opportunity to commercially recover and realize value for antimony already present in our concentrates.' Article content Antimony at the Galena Complex is hosted in the common sulfosalt mineral, tetrahedrite, which is an antimony sulfide of silver, copper, iron and zinc. Although the Galena Complex has produced significant antimony over its life, the Company historically has not realized value for this material due to its insufficient concentration and quality for smelter acceptance. Article content Following a review of historical metallurgical data, the Company commissioned SGS Canada Inc. ('SGS') to conduct flotation tests on current mill feed. There were two objectives to the testwork: Article content Confirm that an antimony/silver flotation product could be achieved from the current ore being processed through the mill. Generate a sufficient volume of flotation concentrate for additional testing to separate the antimony from the concentrate. Article content Test Highlights: Article content These test results on the tetrahedrite material indicate that a marketable concentrate may now be possible using modern metallurgical processes. The results from the test work are shown in Table 1 below. Article content Test 1 Assays Distribution (%) Sb (%) Ag (g/t) Ag (opt) Cu (%) Pb (%) Fe (%) Sb 1 Ag Cu Pb Fe Rougher Concentrate 19.3 20,355 593.4 24.47 0.53 17.5 92.3 98.7 98.3 83.2 4.5 Rougher Tail 25 0.7 0.04 0.01 34.9 1.3 1.7 16.8 95.5 Calculated Head Grade 1,759 51.3 2.12 0.05 33.4 100 100 100 100 Assay Head Grade 1.2 1,790 52.2 2.1 0.05 34.2 Test 2 Assays Distribution (%) Sb (%) Ag (g/t) Ag (opt) Cu (%) Pb (%) Fe (%) Sb 1 Ag Cu Pb Fe Rougher Concentrate 19 20,283 591.3 23.4 0.53 17 90.5 98.9 98.2 83.4 4.3 Rougher Tail 22 0.6 0.04 0.01 35.6 1.1 1.8 16.6 95.7 Calculated Head Grade 1,762 51.4 2.05 0.05 34 100 100 100 100 Assay Head Grade 1.2 1,790 52.2 2.1 0.05 34.2 Test 3 Assays Distribution (%) Sb (%) Ag (g/t) Ag (opt) Cu (%) Pb (%) Fe (%) Sb 1 Ag Cu Pb Fe Rougher Concentrate 17.9 21,132 616.1 24.4 0.57 17.9 93.4 98.7 97.8 84.2 4.5 Rougher Tail 25 0.7 0.05 0.01 35.1 1.3 2.2 15.8 95.5 Calculated Head Grade 1,762 51.4 2.05 0.05 34 100 100 100 100 Assay Head Grade 1.2 1,790 52.2 2.1 0.05 34.2 Test 4 Assays Distribution (%) Sb (%) Ag (g/t) Ag (opt) Cu (%) Pb (%) Fe (%) Sb 1 Ag Cu Pb Fe Rougher Concentrate 18.1 19,836 578.3 22.5 0.5 18.5 96.2 98.3 98.3 83.5 5.1 Rougher Tail 34 1 0.04 0.01 34.6 1.7 1.7 16.5 94.9 Calculated Head Grade 1,844 53.7 2.09 0.06 33.1 100 100 100 100 Assay Head Grade 1.2 1,790 52.2 2.1 0.05 34.2 Note: 1) The antimony (Sb) distribution calculation uses the assay head grade to determine distribution. Article content The test results mark a key step toward establishing Americas Gold and Silver as the only current antimony producer in the United States, unlocking a new revenue stream from a strategic by-product, previously counted as a penalty element, of the Galena ore body. Article content Antimony is recognized by the U.S. government as one of 35 elements on the Department of the Interior's Critical Minerals List due to its use in national defense, energy storage, and semiconductor applications. Currently, more than 90% of the antimony consumed in the United States is imported, primarily from China, Russia, and Tajikistan. At present, there are no operating mines producing antimony in the United States. Article content Over 18 million pounds of antimony have been produced from the Galena Complex since 2001. Americas Gold and Silver is positioned to become the only antimony producer in the U.S. if the potential for commercial recovery and product refinement can be achieved. This milestone would represent a significant development in restoring domestic supply of a mineral deemed essential to U.S. national and economic security, particularly since China stopped selling antimony to the U.S. in September 2024. Article content Antimony is on the U.S. Department of the Interior's Critical Minerals List due to its strategic applications in: Article content Current U.S. Antimony Supply Landscape: Article content Zero operating primary antimony mines >90% imported (mainly from China, Russia, and Tajikistan) No meaningful domestic production Article content Global Antimony Supply (Estimated % of World Production 2024): Article content With no active domestic production, the U.S. is entirely dependent on foreign sources—a strategic vulnerability that Americas Gold and Silver may be uniquely positioned to help address. Article content Galena's Legacy and Opportunity Article content Since 2001, the Galena Complex has produced over 18 million pounds of antimony, making it the largest antimony-producing site in the U.S. over the past two decades. However, until now, no revenue was recognized from this output due to limitations in concentrate quality. Article content Recent testing suggests that modern processes can now: Article content Next Steps Article content Historically, individual lots of ore from both the Galena and Coeur mines were processed at the Sunshine Mine—located just four miles west—where antimony was effectively separated and recovered. Building on this precedent, the next phase of metallurgical testing, under the direction of Allihies Engineering, Inc., will focus on treating the current concentrate to produce multiple saleable antimony products, opening the door to monetizing a long-overlooked byproduct and reinforcing the Company's strategic value within the U.S. critical minerals framework. Article content About Americas Gold & Silver Corporation Article content Americas Gold and Silver is a growing precious metals mining company with multiple assets in North America. The Company owns and operates the Cosalá Operations in Sinaloa, Mexico. In December 2024, the Company acquired 100% ownership in the Galena Complex (located in Idaho, USA) in a transaction with Sprott and a Paul Huet-led management team, further strengthening its position as a leading silver producer. Sprott is now the largest shareholder in the company, holding a ~20% interest. With these strategically positioned assets, Americas Gold and Silver is focused on becoming one of the top North American silver-focused producers with an objective of over 80% of its revenue generated from silver by the end of 2025. Article content 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, among other things, the results recent metallurgical testing at its Galena Complex and the potential that the Company marketable antimony concentrate may now be possible using modern metallurgical processes, and are subject to the risks and uncertainties outlined below. 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: 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. Article content Article content Article content Article content Article content Article content
