Americas GOLD and Silver Announces Transformational US$100 Million Debt Financing and Secures Multi-Metal Offtake Agreement FOR Galena Concentrates
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AMERICAS GOLD AND SILVER ANNOUNCES TRANSFORMATIONAL US$100 MILLION DEBT FINANCING
AND SECURES MULTI-METAL OFFTAKE AGREEMENT FOR GALENA CONCENTRATES
TORONTO, ONTARIO – June 3, 2025 – Americas Gold and Silver Corpora Ɵon (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 addiƟonal tranches of US$25 million.
Americas is also pleased to announce it has entered into an oŏake agreement (the “Oŏake Agreement”)
with Ocean Partners USA Inc. (“Ocean Partners”) fo r treatment of up to 100% of the concentrates from
the Company’s Galena Complex at Teck Resources Limited’s (“Teck”) Trail Opera Ɵons in Trail Bri Ɵsh
Columbia, one of the world’s largest fully-integrated zinc, lead and criƟcal metals complexes. As a condiƟon
to closing the Term Loan Facility and in conjunc Ɵon with the O ŏake Agreement, Ocean Partners will
subscribe for 16.8 million common shares in the Company at C$0.95 per common share, represen Ɵng 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 culmina Ɵon of months of work, the $100 million in non-
diluƟve 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 cri Ɵcal to our major
growth plans at Galena which include the reintroducƟon of Long Hole Stoping and associated underground
development, conƟnued major equipment purchases and upgrades to the No. 3 shaŌ. The projects to be
executed are driven by the results of our materials handling trade o ff studies completed over the course
of the year to date, all focused on boos Ɵng produc Ɵvity underground and e fficiency in our hois Ɵng
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 o ŏake strategy, I am very pleased to have closed a strong agreement at very
compeƟƟve 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 Opera Ɵons. The Agreement reinforces a
robust strategic rela Ɵonship to recover a wide variety of metals from the polymetallic concentrates
produced at our opera Ɵons at a world class facility in close geographic proximity to our opera Ɵons.
Guaranteeing processing capacity at a nearby smelter is cri Ɵcal as the Company executes its plans to
significantly increase silver and by-product metal producƟon over the next several years.
We are also very encouraged that as part of the Agreement, Ocean Partners have elected to sa Ɵsfy the
Term Loan Facility pre- financing condi Ɵon via an US$11.5 million equity investment into Americas at a
significant 14% premium to our share price. This invest ment by Ocean Partners is a testament to their
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confidence in our growth iniƟaƟves and further aligns us in our overarching corporate objecƟve of building
shareholder value. The proceeds of the equity investment will be used immediately to conƟnue the strong
momentum of our impacƞul 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 poten Ɵal of the Galena Complex. Our first 150 days at
the helm of Americas has iden Ɵfied some quick wins and is delivering several outstanding produc Ɵvity
improvements already - we look forward to con Ɵnuing 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 con Ɵnue our strong
partnership with Americas and Teck’s Trail Opera Ɵons and to facilitate the delivery of Galena Complex
c o n c e n t r a t e s t o w h a t w e v i e w a s t h e o pƟmal receiver. We are extremely impressed by the focus and
diligence of Paul and his Americas team and we are very excited to par Ɵcipate in the value creaƟon from
the expansion and opƟmizaƟon of operaƟons at the Galena Complex over the coming months and years.”
Ian Anderson, Chief Commercial O fficer of Teck commented: “This arrangement will help strengthen
North America’s criƟcal minerals supply chain by securing high-quality ore concentrate feed for Teck’s Trail
OperaƟons 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 amorƟze over the term of the loan, with principal repayments commencing one year
aŌer the closing date and payable quarterly thereaŌer.
Two addiƟonal US$25 million tranches that will be available to AGS upon the achievement of
certain condiƟons precedent. The first such tranche will be subject to an interest rate of SOFR (4%
floor) plus 6% a Ōer funding. The second tranche will be subject to an interest rate of SOFR (4%
floor) plus 4% a Ōer funding. Principal will amor Ɵze over the term of the loan with principal
repayments commencing one year aŌer the closing date and payable quarterly thereaŌer.
The lender will hold senior security over all the Co mpany’s assets and undertakings other than those
relaƟng to Americas Cosalá OperaƟons located in Sinaloa, Mexico and its Relief Canyon Project located in
Nevada USA, which are secured in priority to the lender by Tra figura and Sandstorm, respecƟvely for the
duraƟon 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 transacƟon is subject to customary condiƟons 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 consideraƟon of US$11.5 million (C$15.8 million). The Privat e Placement is expected to close on or
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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 CorporaƟon
Americas Gold and Silver is a growing precious metals mining company with mul Ɵple assets in North
America. The Company owns and operates the Cosalá Opera Ɵons in Sinaloa, Mexico. In December 2024,
the Company acquired 100% ownership in the Galena Complex (located in Idaho, USA) in a transac Ɵon
with SproƩ and a Paul Huet-led management team, further strengthening its posi Ɵon as a leading silver
producer. SproƩ is now the largest shareholder in the comp any, holding a ~20% interest. With these
strategically posiƟoned assets, Americas Gold and Silver is focused on becoming one of the top North
American silver-focused producers with an objecƟve of over 80% of its revenue generated from silver by
the end of 2025.
For further informaƟon, please contact:
Maxim Kouxenko - Manager, Investor RelaƟons
M: 647-888-6458
W: americas-gold.com
CauƟonary Statement on Forward-Looking InformaƟon:
This news release contains “forward-looking informaƟon” within the meaning of applicable securiƟes laws.
Forward-looking informaƟon includes, but is not limited to, Americas’ expecta Ɵons, inten Ɵons, plans,
assumpƟons, and beliefs with respect to, among other things, the poten Ɵal 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 uncertainƟes outlined below. OŌen, but not always, forward-
looking informaƟon can be iden Ɵfied by forward-looking words such as “an Ɵcipate,” “believe,” “expect,”
“goal,” “plan,” “intend,” “potenƟal,” “esƟmate,” “may,” “assume,” and “will” or similar words suggesƟng
future outcomes, or other expectaƟons, beliefs, plans, objecƟves, assumpƟons, intenƟons, or statements
about future events or performance. Forward-looking informaƟon is based on the opinions and esƟmates
o f A m e r i c a s a s o f t h e d a t e s u c h i n f o r m aƟon is provided and is subject to known and unknown risks,
uncertainƟes, and other factors that may cause the actual results, level of ac Ɵvity, performance, or
achievements of Americas to be materially di fferent from those expressed or implied by such forward-
looking informa Ɵon. These risks and uncertain Ɵes include, but are not limited to: interpreta Ɵons or
reinterpretaƟons of geologic informa Ɵon; unfavorable explora Ɵon results; inability to obtain permits
required for future exploraƟon, development, or producƟon; general economic condiƟons and condiƟons
affecƟng the mining industry; the uncertainty of regulatory requirements and approvals; poten Ɵal
liƟgaƟon; fluctuaƟng 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 fluctuaƟons, and energy prices), ground condi Ɵons, failure
of plant, equipment, processes, and transportaƟon services to operate as anƟcipated, environmental risks,
government regulaƟon, actual results of current exploraƟon and producƟon acƟviƟes, possible variaƟons
in grade or recovery rates, permi ƫng Ɵmelines, capital expenditures, reclama Ɵon ac ƟviƟes, labor
relaƟons; and risks related to changing global economic condi Ɵons and market vola Ɵlity. Although the
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Company has aƩempted to idenƟfy important factors that could cause actual results to di ffer materially
from those contained in forward-looking informaƟon, there may be other factors that cause results not to
be as an Ɵcipated, esƟmated, or intended. Readers are cau Ɵoned not to place undue reliance on such
informaƟon. AddiƟonal informaƟon regarding the factors that may cause actual results to differ materially
from this forward-looking informa Ɵon is available in Americas’ filings with the Canadian Securi Ɵes
Administrators on SEDAR+ and with the SEC. Americas does not undertake any obliga Ɵon to update
publicly or otherwise revise any forward-looking informa Ɵon whether as a result of new informa Ɵon,
future events, or other such factors which affect this informaƟon, except as required by law. Americas does
not give any assurance (1) that Americas will achieve its expectaƟons, or (2) concerning the result or Ɵming
thereof. All subsequent wriƩen and oral forward-looking informa Ɵon concerning Americas are expressly
qualified in their enƟrety by the cauƟonary statements above.