Silver Storm Secures Financing Proposals for LA Parrilla Mine’s Restart in Mexico

Silver Storm Mining, a Canadian exploration and resource company, has obtained several non-binding financing proposals from trading companies to support the restart of operations at the La Parrilla silver mine in Durango, Mexico. The proposals, linked to debt and offtake agreements, aim to fund the reactivation of the previously operational mine.

The funding is intended to facilitate near-term activities necessary for the mine’s restart.

The proposed financing facilities range from C$15 million to C$17 million, with terms spanning 36 to 48 months and interest rates based on the SOFR three-month rate plus a standard premium. These funds will support immediate activities required to resume mining operations. Each proposal includes a prepayment or structured finance facility tied to commercial offtake contracts covering 100% of production during the facility’s term. The agreements are subject to conditions such as due diligence, compliance, documentation, pledge guarantees, and credit committee approval. There is no guarantee that final agreements will be reached or that terms will be acceptable.

In March 2025, Silver Storm reported a substantial increase in La Parrilla’s mineral resources. Indicated resources grew by 107%, from 5.2 million ounces of silver equivalent (Ag.Eq) to 10.8 million ounces Ag.Eq, while inferred resources rose by 58%, from 10.3 million ounces Ag.Eq to 16.3 million ounces Ag.Eq. The majority of these resources are sulphide mineralization, with silver accounting for most of the metal value. Additionally, 23 new mineralized structures have been identified, some previously mined, indicating potential for further resource growth.

Silver Storm acquired the La Parrilla silver mine complex in August 2023. The complex includes a 2,000-tonne-per-day mill, five underground mines, and an open pit, which collectively produced 34.3 million ounces Ag.Eq between 2005 and 2019. The company’s efforts to restart operations build on this historical production, leveraging updated resource estimates and new financing opportunities to advance the project.

The financing proposals mark a critical step toward resuming operations at La Parrilla, supporting Silver Storm’s strategy to capitalize on the mine’s expanded resources and established infrastructure. Successful execution of these agreements could position the company to contribute significantly to the silver mining sector in Mexico.