Silver Bow Mining Corp (SBMT) News & EventsSBMTSilver Bow Mining Corp

Silver Bow Mining Signs $88M Funding Agreement with Ocean Partners

Silver Bow Mining has signed a non-binding term sheet with Ocean Partners UK for an integrated funding, credit support, and offtake package with an aggregate total of approximately $88M. The funding package contemplates a $40M concentrate prepayment facility linked to ten-year zinc and lead concentrate offtake agreements for the Company's Rainbow Block Project in Butte, Montana and the to-be acquired Montana Tunnels Mine within the Jefferson County Metallurgical Complex, approximately $43.1M of reclamation bond guarantees at the Rainbow Block and Montana Tunnels Mine, and a $5M lead in a future Silver Bow Mining equity investment. A binding $5M pre-closing bridge note, to be funded within five business days of signing, forms part of, and will be credited against, the first tranche of the prepayment facility. The contemplated zinc and lead concentrate offtake agreements would cover concentrates attributable to the Rainbow Block, ores from outside the M-Pit at the Montana Tunnels Mine and one-third of concentrate from ores from the M-Pit at the Montana Tunnels Mine. The Company previously entered into an agreement to acquire the Complex and is targeting final closing of the acquisition in the fourth quarter of 2026, subject to the closing conditions. Highlights: Approximately $88M in total funding and credit support. Funding from a single strategic counterparty, Ocean Partners, structured to fund the restart of the Rainbow Block, the refurbishment of the Complex and working capital, without production-timing covenants. Approximately $42M of cash to be released to the Company. Ocean Partners would provide guarantees supporting replacement surety bonds of up to $43.1M. Subject to acceptable terms and approvals, the replacement bonds would be expected to release $40.9M currently posted as a cash reclamation bond for the Complex and approximately $1.1M of cash collateral currently supporting the Rainbow Block US$2.19 million surety bond. Butte reclamation bond also guaranteed. Ocean Partners would provide a guarantee supporting the Company's approximately $2.19M Rainbow Block reclamation bond. $40M concentrate prepayment facility in three tranches:$10M at initial closing of the Facility; $20M on a board resolution approving a restart or refurbishment program at either the Properties; and $10M at the Company's option after three consecutive months of concentrate deliveries under any of the concentrates contracts. No production-timing covenants; repayment principally by set-off against concentrate deliveries. $5M pre-bridge financing. As part of the $40M concentration prepayment facility, Ocean Partners is expected to fund a $5M pre-closing bridge within five business days after execution of the Term Sheet and short-form bridge note. The bridge would be credited against the initial $10M tranche at initial closing of the Facility. $5M lead investment in future equity investment. Ocean Partners will agree to act as lead investor, if and when, the Company conducts its next round of equity financing on the same terms as other investors. Ten-year offtake agreements with flexibility preserved. Ocean Partners would purchase 100% of any future potential zinc and lead concentrates attributable to the Rainbow Block, 100% of any future potential zinc and lead concentrates attributable to ores from outside the M-Pit at Montana Tunnels and one-third of future potential zinc and lead concentrates from inside the M-Pit at Montana Tunnels on benchmark-linked terms with no minimum tonnages and no take-or-pay. The Company retains priced rights to terminate the offtake contracts at any time, before or after production, and these rights survive a change of control of the Company. Junior to future project debt. The Ocean Partners financing is structured to rank subordinate to future senior project debt financing for both the Rainbow Block and the Complex, preserving the Company's ability to put conventional project financing in place as the Properties advance. Definitive documentation targeted concurrently with Final Closing of the acquisition of the Complex, which the Company is targeting for the fourth quarter of 2026.

Silver Bow Mining Discovers Copper Mineralization in Montana

Silver Bow Mining announced that drill hole SBM26-09 has intersected chalcocite-bornite-chalcopyrite-bearing massive sulfide mineralization on the Black Rock Copper Vein at the Company's Rainbow Block Project in Butte, Montana. Highlights: SBM26-09 intersected 0.82 meters of copper-bearing massive sulfide mineralization on the Black Rock Copper Vein grading 8.20% copper equivalent comprising 6.22% Cu, 207.1 grams per tonne Ag and 0.27% Zn. The SBM26-09 intersection occurs approximately 30 meters below a historical Anaconda Company unmined copper-silver block identified in Anaconda's 1978 district-wide records. The Company is currently drilling a follow-up hole from surface to test the extent of copper-silver mineralization in the Black Rock Copper Vein at shallower depths. The assays reported from SBM26-09 represent rush assay results from the massive sulfide interval. Assays from additional vein systems intersected in the drill hole remain pending and will be reported once received and reviewed.

Silver Bow Mining Completes Asset Acquisition of Montana Tunnels

Silver Bow Mining announces that on September 4, the U.S. Bankruptcy Court for the District of Montana entered an order approving the sale of specified assets of Montana Tunnels Mining, Inc. referred to as the Jefferson County Metallurgical Complex to Silver Bow Mining and its wholly owned subsidiary, Silver Bow Tunnels Corp., pursuant to Sections 105(a) and 363 of the U.S. Bankruptcy Code. The Company has also completed the initial closing contemplated by the definitive asset purchase agreement announced by the Company on August 24. Prior to the Initial Closing, the Company had funded approximately $28.58M into an escrow account to satisfy specified creditor obligations associated with the acquired assets, including approximately $4.27M in respect of amounts owing to Jefferson County, Montana and approximately $20.78M in respect of specified obligations owing to the Montana Department of Environmental Quality. Release of funds to all creditors will occur over the course of a few days as payment instructions are finalized. As part of the Initial Closing, the Company has delivered instructions to the escrow agent to release funds to satisfy specified creditor obligations. In consideration of the direction to release the funds from escrow, Montana Goldfields, Inc. issued the Company a senior secured note, guaranteed by Montana Tunnels Mining, Inc. and secured against real property interests, fixtures and tangible personal property at the Complex. The Initial Closing does not constitute the transfer of ownership of the Complex to Silver Bow Mining. The Company expects to acquire ownership of the Complex at the final closing contemplated by the Definitive Agreement, subject to the satisfaction or waiver of applicable customary closing conditions, including the approval of the shareholders of the Company of the issuance of common shares underlying contingent value rights and the approval of the NYSE American stock exchange, as detailed in the Company's August 24.