Americas Gold and Silver Announces Transformational US$100 Million Debt Financing and Secures Multi-Metal Offtake Agreement for Galena Concentrates
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
National Post
an hour ago
- National Post
Why bespoke transit could be the answer to Canada's traffic woes
Traffic congestion is reaching crisis levels across Canada's largest urban regions, threatening the economy and eroding quality of life for millions. From Toronto's notorious Highway 401 bottleneck — costing commuters over three million hours of delay each year — to traffic jams in Montreal and Vancouver, the country's major corridors are consistently among the worst in North America. Article content Article content One upstart, Argo, hopes to mitigate the problem with a made-in-Canada public transit concept. Article content Article content Article content Argo integrates with existing transit lines and fare systems, an approach that could serve as a template for municipalities from coast to coast, supporting federal and provincial goals to cut emissions, boost economic productivity, and improve access to jobs, health care and education. Article content Argo's new busing line allows users to request a transit ride near their location, with an app or phone call. Argo's smart routing system groups passengers going the same way. The rider is then taken to an existing transit connection, or close to their final destination — all under one standard fare. Article content In the three months since launching its service in Bradford West Gwillimbury, Ont., Argo doubled ridership, having now replaced all fixed bus routes once operated by a private contractor. Article content This summer, Argo will roll out a 12-month pilot in Brampton, Ont., complementing an existing transit network with Brampton Transit and GO lines. Article content Article content Praveen Arichandran speaks to the National Post's Dave Gordon about Argo Corporation, the Toronto-based publicly traded company he co-founded last year. With degrees in computer engineering and economics from the University of Waterloo, Arichandran previously served as Tesla's head of growth, and on Facebook's international growth team. He was named to Forbes' global '30 Under 30' list in 2019, and served as a key adviser to TikTok. Article content What's unique about Argo? Article content We are building a future where public transit is more convenient than driving, but as affordable as taking the bus. We fully integrate with existing transit lines and fare systems, so that integration lets us deliver faster deployments, lower costs and a better quality of service. We're dynamically routing our vehicles and grouping riders intelligently. Article content I think more broadly for society, that means a future where access to jobs, health care, education and our loved ones is democratized, and not just limited to those who can afford car payments, real estate next to major transit lines, or those mobile enough to walk to the bus stop and wait in the cold for the bus. Argo vehicles are fully electric and wheelchair accessible with an 18-passenger capacity.
CTV News
an hour ago
- CTV News
GTA home sales down year-over-year in June, listings up: real estate board
Real estate signage is shown in Oakville, Ont., west of Toronto on Saturday, May 11, 2024. THE CANADIAN PRESS/Richard Buchan TORONTO — Greater Toronto Area-home sales ticked 2.4 per cent lower in June compared with a year earlier as 6,243 properties changed hands, while new listings rose. The Toronto Regional Real Estate Board says sales were up 8.1 per cent from May on a seasonally adjusted month-over-month basis, as the housing market 'continued to show signs of recovery.' The board says 19,839 new properties were listed in the GTA last month, up 7.7 per cent compared with last year. TRREB president Elechia Barry-Sproule says that with more listings available and lower borrowing costs than this time last year, home ownership is becoming more attainable and buyers have been negotiating discounts on asking prices. The average selling price decreased 5.4 per cent compared with a year earlier to $1,101,691, and the composite benchmark price, meant to represent the typical home, was down 5.5 per cent year-over-year. Active listings hit 31,603 last month, up 30.8 per cent from June 2024's inventory of 24,169 homes. This report by The Canadian Press was first published July 4, 2025. Sammy Hudes, The Canadian Press
Globe and Mail
an hour ago
- Globe and Mail
Retire Rich: The family ties of a financial plan
Good morning. I hope you found some time to relax during this week of Canada Day celebrations – maybe even in the sun. Today, we're digging into how our family backgrounds can shape the way we think about, and plan for, retirement. I've been thinking a lot lately about how culture influences our financial decisions, especially when it comes to retirement. It's not just about how much we've saved or when we want to stop working. For many people, it's also about family, their legacy and obligations. New data from Fidelity Canada's 2025 Retirement Report back that up. For example, nearly 60 per cent of people born outside Canada say financially supporting their children is holding them back from retiring when they'd like. That's almost double the rate of those born in Canada. And the financial commitment doesn't stop when the kids leave school. More than half of foreign-born pre-retirees expect to continue supporting their adult children in some way through retirement. Among Canadian-born respondents, that number drops to 39 per cent. There's a similar gap when it comes to the importance of leaving behind a financial legacy: 56 per cent of immigrants said it matters to them, compared to 46 per cent of those born in Canada. Taken together, the data paint a clear picture: Retirement isn't a one-size-fits-all experience. Cultural expectations and intergenerational ties can significantly shape what it looks like, and when it begins. But numbers only tell part of the story. I want to hear yours. Have you supported or been supported by family across generations? Did your upbringing influence how you think about retirement? Whether you or your parents were born in Canada or elsewhere, send me a note at mraman@ Past financial mistakes can delay major life goals. It might sound dramatic, but many Canadians say it's their reality. Forty-one per cent of Canadians aged 30 to 44 say previous money blunders have delayed major milestones, such as paying off debt or buying a home, according to a new survey from Why it matters: Money mistakes don't just hurt in the moment, they can cast a long shadow. Survey respondents said these past choices made it harder to save, tackle debt, plan for retirement or simply live the life they want. Yes, but: Everyone makes money mistakes. What matters is what you do next. With some smart planning and consistency, it's entirely possible to get back on track. Can we renovate our basement and still retire in a decade? That's the question Romesh, 54, and Gayle, 52, are asking. Let's break it down. The numbers: The Toronto couple earns $150,000 a year, has $2-million in assets, and carries a $475,000 mortgage. They're planning a $125,000 basement renovation, with maybe another $50,000 to add a rental unit. Their goal is to retire in about a decade with $8,000 a month in after-tax income. The good news: They're in solid shape. A financial planner says they can reach their goals, even with the renovation, as long as they make a few smart moves. Key steps, from a financial planner: Plus: A rental suite could boost their net worth by 11 per cent, but they'll need to weigh the potential tax impact and whether they want to be landlords later in life. 🚨 Traditional retirement is changing. The idea of working until 65, retiring and never working again is fading. Many people are retiring earlier, then starting businesses, freelancing or even becoming influencers. We want to hear about what your second act is. Tell me about it at mraman@ ☀️ Will Canadian snowbirds in Florida go extinct? Florida just isn't the sunny escape it once was for many Canadian retirees. Rising costs, a shaky loonie and growing U.S.-Canada trade tensions have prompted some to stay north or even sell their winter homes altogether. A new law may ease the pressure by helping condo owners with rising maintenance fees, but for many, the Florida dream is starting to dim. 🩺 The 101 on preventing falls as you age. Falls can be dangerous at any age, but they're especially serious for older adults. In Canada, they're the leading cause of injury-related hospitalizations for those over 65. The good news? You can lower your risk with simple preventative measures, such as balance-focused exercises and regular strength training. 🏡 Cheaper housing could lead to a retirement crisis. That sounds intense, but opinion writer John Turley-Ewart could have a point. Many Canadians rely on the equity in their homes to fund retirement. If housing prices drop, that nest egg shrinks. With just 38 per cent of today's work force covered by employer pension plans, more people are depending on home sales to finance their later years. 🤑 Gen Z is better at saving for retirement than you might think. A New York Times article dives into how American Gen Zers are contributing to their 401(k)s more than millennials did when they first entered the workforce. DIY investing and easier access to financial knowledge through social media could be a big reason why. 📱 Stop paying roaming fees on vacation. If you're headed out of the country this summer, don't just turn on roaming and hope for the best ... that's a fast track to a hefty phone bill. Instead, call your provider before your trip and ask about travel plans or perks (many have options they don't advertise). Or, consider getting an eSIM, a digital SIM card already built into your phone. Services like Airalo, aloSIM and Global YO let you buy international data packages before you even leave.
