Americas GOLD and Silver Signs Credit and Off‐take Agreement FOR EC120 Project
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AMERICAS GOLD AND SILVER SIGNS CREDIT AND OFF‐TAKE AGREEMENT FOR EC120 PROJECT
TORONTO, ONTARIO ‐ August 14, 2024 ‐ Americas Gold and Silver CorporaƟon (TSX: USA) (NYSE American:
USAS) (“Americas” or the “Company”), a growing North American silver producer, is pleased to announce
the signing of a Credit and Off‐Take Agreement (the “Agreement ”) with Trafigura PTE Ltd. (“Trafigura”) for
the development of the 100%‐owned Zone 120 and El Cajón silver‐copper project (“EC120 Project”) at the
Company’s Cosalá OperaƟons in Mexico. All figures are in U.S. dollars unless otherwise noted.
Highlights
The Agreement provides the Company with a secured credit facility of up to $15 million to complete
the pre‐production development of the EC120 Project at its Cosalá Operations to begin producing
high‐grade silver‐copper concentrate in Q3‐2025. The Company expects to draw only $10 million
on the credit facility initially subject to standard closing conditions.
The 2019 Preliminary Feasibility Study (“PFS”) for the EC120 Project projected average annual
metal production of 2.5 million ounces of silver and 4.5 million pounds of copper at life of mine
cash cost [1] and all‐in sustaining cost [1] estimated to be $9.61/oz and $10.81/oz, respectively, with
estimated annual average cash flow of $15 million using $17.50 per ounce silver and $3.00 per
ounce copper. At the current prices, the Company expects to generate substantially greater cash
flow over the life of the project with lower capital, cash cost per silver and AISC per silver ounce.
Initial development access to the Zone 120 deposit began in Q3‐2023 and is expected to be fully
completed in Q3‐2025. The Company has already processed close to 140,000 tonnes of EC120
ore, 30,000 tonnes of development ore from Zone 120, and 110,000 tonnes of ore from El Cajón
in 2017. Recoveries from processing this ore have been within acceptable range of the PFS targets
and Trafigura off‐take requirements.
The EC120 Project is expected to increase the porƟon of total Company revenue derived from
silver to over 80% by the end of 2025, posiƟoning the Company as one of the foremost silver‐
focused companies in poliƟcally stable jurisdicƟons.
“We are excited to partner with Trafigura to fully finance the EC120 Project development,” stated Americas
ExecuƟve Vice President and CFO Warren Varga. “The Agreement provides non‐diluƟve financing at
compeƟƟve terms to complete this brownfield project. At current market prices, the EC120 Project is
expected to generate significantly greater cash flow for the Company which will be deployed to conƟnue
to derisk the Company’s balance sheet. The significant increases in both silver producƟon and cash flow
from both silver and copper are anƟcipated to have a posiƟve impact on the Company’s profitability
moving forward.”
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EC120 Project Overview
With the current silver and copper prices, the Company decided to expedite the development of its 100%‐
owned EC120 Project at the Cosalá OperaƟons prior to the full depleƟon of the San Rafael orebody. Zone
120 is located conƟguous to the Company’s exisƟng San Rafael deposit and iniƟal access occurred in Q3‐
2023 from the San Rafael Upper Zone development. The EC120 Project will use the exisƟng Cosalá plant
faciliƟes, tailings, and equipment with underground development costs represenƟng the majority of the
capital for the project, which represents a significant decrease in capital requirements compared to
standalone project envisioned in the PFS. Pre‐producƟon capital requirements for underground
development have also been reduced by $2 million due to approximately 1,100 metres of already
completed pre‐producƟon capital development. The Company is expecƟng to conƟnue to operate San
Rafael up to the commencement of commercial producƟon from the EC120 Project.
The PFS projected average annual metal producƟon of 2.5 million ounces of silver and 4.5 million pounds
of copper with a total of over 12 million ounces of silver and 23.0 million pounds of copper over the
planned five‐year life of the project. EsƟmated cash cost per ounce silver for the PFS were $9.61 per ounce
and all‐in sustaining cost per silver ounce of $10.81 per ounce silver . The PFS assumed metal prices $17.50
per ounce silver and $3.00 per pound copper .
Both silver and copper prices have increased significantly since the compleƟon of the 2019 Preliminary
Feasibility Study. At the current prices, the Company expects to generate substanƟally greater cash flow
over the life of the project with both lower cash cost and AISC per ounce and will evaluate the processing
of addiƟonal silver‐copper ore that may now be economic at current prices.
The Company has mined and processed close to 30,000 tonnes of Zone 120 development ore with
recoveries within acceptable range of the PFS targets. The Company esƟmates that the EC120 Project
will reach commercial producƟon in Q3‐2025. Silver producƟon from the Cosalá OperaƟons is expected to
increase from less than 1 million ounces per year to ~2.5 million ounces per year. Along with the forecasted
increase in silver producƟon from the Company’s Galena Complex in Idaho, the Company expects
consolidated silver revenue to increase to over 80% of total revenue by the end of H2‐2025 making it one
of the rare, North American‐focused, primary silver producers in the silver mining sector .
Credit Facility Terms
The credit facility provides the Company with up to $15 million available for the development of the EC120
Project though expects to iniƟally draw only $10 million, relying on both internally generated cash in
addiƟon to funds advanced under the credit facility to fund the development of the Project. The term is
36 months which includes a principal repayment grace period of 12 months and bears interest at Secured
Overnight Financing Rate (“SOFR”) plus 6% on the cumulaƟve drawings up to $12 million and 6.5% on the
outstanding principal amount thereaŌer . The credit facility will be amorƟzed in equal monthly installments
of $600,000 commencing aŌer expiry of the grace period. The facility will be secured by share and asset
pledges of all the Company’s material Mexican subsidiaries with the Company’s exisƟng converƟble
debenture creditors agreeing to subordinate exisƟng security. As part of the Agreement, Trafigura receives
100% of the silver‐copper concentrate producƟon from the EC120 Project on commercial terms.
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About Americas Gold and Silver CorporaƟon
Americas Gold and Silver CorporaƟon is a high‐growth precious metals mining company with mulƟple
assets in North America. The Company owns and operates the Cosalá OperaƟons in Sinaloa, Mexico,
manages the 60%‐owned Galena Complex in Idaho, USA, and is re‐evaluaƟng the Relief Canyon mine in
Nevada, USA. The Company also owns the San Felipe development project in Sonora, Mexico. For further
informaƟon, please see SEDAR+ or www.americas‐gold.com.
For more informaƟon:
Stefan Axell Darren Blasuƫ
VP , Corporate Development & CommunicaƟons President and CEO
Americas Gold and Silver CorporaƟon Americas Gold and Silver CorporaƟon
416‐874‐1708 416‐848‐9503
Technical InformaƟon and Qualified Persons
The scienƟfic and technical informaƟon relaƟng to the Company’s material mining properƟes contained
herein has been reviewed and approved by Chris McCann, P .Eng., Vice President, Technical Services of the
Company. The Company’s current Annual InformaƟon Form and the NI 43‐101 Technical Reports for its
mineral properƟes, all of which are available on SEDAR+ at www.sedarplus.ca, and EDGAR at www.sec.gov,
contain further details regarding mineral reserve and mineral resource esƟmates, classificaƟon and
reporƟng parameters, key assumpƟons and associated risks for each of the Company’s material mineral
properƟes, including a breakdown by category.
All mining terms used herein have the meanings set forth in NaƟonal Instrument 43‐101 – Standards of
Disclosure for Mineral Projects (“NI 43‐101”), as required by Canadian securiƟes regulatory authoriƟes.
These standards differ from the requirements of the SEC that are applicable to domesƟc United States
reporƟng companies. Any mineral reserves and mineral resources reported by the Company in accordance
with NI 43‐101 may not qualify as such under SEC standards. Accordingly, informaƟon contained in this
news release may not be comparable to similar informaƟon made public by companies subject to the SEC’s
reporƟng and disclosure requirements.
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’ expectaƟons, intenƟons, plans,
assumpƟons and beliefs with respect to, among other things, esƟmated and targeted producƟon rates and
results for gold, silver, copper and other metals, the expected prices of gold, silver, copper and other
metals, as well as the related costs, expenses and capital expenditures; producƟon from the Galena
Complex and Cosalá OperaƟons, including the expected number of producing stopes and producƟon
levels; the expected Ɵming and compleƟon of required development and the expected operaƟonal and
producƟon results therefrom, including the anƟcipated improvements to producƟon rates and cash costs
per silver ounce and all‐in sustaining costs per silver ounce; and statements relaƟng to Americas’ EC120
Project, including expected approvals, prepayment financing availability, execuƟon and Ɵming and capital
expenditures required to develop such project and reach producƟon thereat, and expectaƟons regarding
its ability to rely in exisƟng infrastructure, faciliƟes, and equipment. Guidance and outlook references
contained in this press release were prepared based on current mine plan assumpƟons with respect to
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producƟon, development, costs and capital expenditures, the metal price assumpƟons disclosed herein,
and assumes no further adverse impacts to the Cosalá OperaƟons from blockades or work stoppages, and
compleƟon of the shaŌ repair and shaŌ rehab work at the Galena Complex on its expected schedule and
budget, the realizaƟon of the anƟcipated benefits therefrom, and is subject to the risks and uncertainƟes
outlined below. The ability to maintain cash flow posiƟve producƟon at the Cosalá OperaƟons, which
includes the EC120 Project, through meeƟng producƟon targets and at the Galena Complex through
implemenƟng the Galena RecapitalizaƟon Plan, including the compleƟon of the Galena shaŌ repair and
shaŌ rehab work on its expected schedule and budget, allowing the Company to generate sufficient
operaƟng cash flows while facing market fluctuaƟons in commodity prices and inflaƟonary pressures, are
significant judgments in the consolidated financial statements with respect to the Company’s liquidity.
Should the Company experience negaƟve operaƟng cash flows in future periods, the Company may need
to raise addiƟonal funds through the issuance of equity or debt securiƟes. OŌen, but not always, forward‐
looking informaƟon can be idenƟfied by forward‐looking words such as “anƟcipate”, “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
of Americas as of the date such informaƟon is provided and is subject to known and unknown risks,
uncertainƟes, and other factors that may cause the actual results, level of acƟvity, performance, or
achievements of Americas to be materially different from those expressed or implied by such forward‐
looking informaƟon. With respect to the business of Americas, these risks and uncertainƟes include risks
relaƟng to widespread epidemics or pandemic outbreak, acƟons that have been and may be taken by
governmental authoriƟes to contain such epidemic or pandemic or to treat its impact and/or the
availability, effecƟveness and use of treatments and vaccines (including the effecƟveness of boosters);
interpretaƟons or reinterpretaƟons of geologic informaƟon; unfavorable exploraƟon results; inability to
obtain permits required for future exploraƟon, development or producƟon; general economic condiƟons
and condiƟons affecƟng the industries in which the Company operates; the uncertainty of regulatory
requirements and approvals; potenƟal liƟgaƟon; fluctuaƟng mineral and commodity prices; the ability to
obtain necessary future financing on acceptable terms or at all; the ability to operate the Company’s
projects; and risks associated with the mining industry such as economic factors (including future
commodity prices, currency fluctuaƟons and energy prices), ground condiƟons, illegal blockades and other
factors limiƟng mine access or regular operaƟons without interrupƟon, 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 ore grade
or recovery rates, permiƫng Ɵmelines, capital and construcƟon expenditures, reclamaƟon acƟviƟes, labor
relaƟons or disrupƟons, social and poliƟcal developments, risks associated with generally elevated
inflaƟon and inflaƟonary pressures, risks related to changing global economic condiƟons, and market
volaƟlity, risks relaƟng to geopoliƟcal instability, poliƟcal unrest, war, and other global conflicts may result
in adverse effects on macroeconomic condiƟons including volaƟlity in financial markets, adverse changes
in trade policies, inflaƟon, supply chain disrupƟons and other risks of the mining industry. Although the
Company has aƩempted to idenƟfy important factors that could cause actual results to differ materially
from those contained in forward‐looking informaƟon, there may be other factors that cause results not to
be as anƟcipated, esƟmated, or intended. Readers are cauƟoned 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 informaƟon is available in Americas’ filings with the Canadian SecuriƟes
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Administrators on SEDAR+ and with the SEC. Americas does not undertake any obligaƟon to update
publicly or otherwise revise any forward‐looking informaƟon whether as a result of new informaƟon,
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 informaƟon concerning Americas are expressly
qualified in their enƟrety by the cauƟonary statements above.
1 This metric is a non‐GAAP financial measure or ratio. The Company uses the financial measures “Cash
Cost”, “Cash Cost/Ag Oz Produced”, “All‐In Sustaining Cost”, and “All‐In Sustaining Cost/Ag Oz Produced”
in accordance with measures widely reported in the silver mining industry as a benchmark for
performance measurement and because it understands that, in addition to conventional measures
prepared in accordance with IFRS, certain investors and analysts use this information to evaluate the
Company’s underlying cash costs and total costs of operations. Cash costs are determined on a mine‐by‐
mine basis and include mine site operating costs such as mining, processing, administration, production
taxes and royalties which are not based on sales or taxable income calculations, while all‐in sustaining
costs is the cash costs plus all development, capital expenditures, and exploration spending. A full
reconciliation of these non‐GAAP financial measures can be found in the Technical Report on the San
Rafael Mine and the EC120 Preliminary Feasibility Study, Sinaloa, Mexico available on the Company’s
website.