Silver Storm Secures US$7 Million Samsung Financing to Restart Mexican Silver Mine

Canadian miner Silver Storm Mining (TSXV:SVRS,OTCQB:SVRSF) has signed a US$7 million offtake prepayment deal with Samsung Construction and Trading (HKEX:028260) and two of its subsidiaries to help restart production at its La Parrilla silver mine complex in Durango, Mexico.

Under the agreement announced Friday (October 10), Samsung and subsidiaries will provide the financing through a secured prepaid facility over 18 months.

Samsung will receive 100 percent of the lead-silver and zinc concentrates produced at La Parrilla over a two-year period under the offtake agreement. The financing is secured through a corporate guarantee, a share pledge, and first-ranking security on La Parrilla’s assets.

Silver Storm said the facility carries an interest rate of the one-month Secured Overnight Financing Rate (SOFR) plus 4.75 percent, with a six-month grace period for interest and capital repayments.

Repayments will then be made in equal monthly installments over the following 12 months, potentially offset through concentrate sales.

“The company has sufficient liquidity to complete the planned restart and rehabilitation activities at La Parrilla,” said Silver Storm President and CEO Greg McKenzie. “Samsung’s involvement as a guaranteed purchaser for the concentrates reflects the confidence of a leading industry participant in our path forward and provides Silver Storm with another partner that is committed to bringing La Parrilla back into operation.”

The company added that the proceeds will go toward mill rehabilitation and upgrades, underground development, and working capital for the restart phase.

Once a prolific producer of silver and base metals, the La Parrilla complex includes a 2,000-metric-ton-per-day mill and several underground mines.

The company expects operations to resume in the first half of 2026.

The project’s revival is seen as a key milestone for Silver Storm, which holds a 100 percent interest in La Parrilla and the San Diego Project, another large undeveloped silver asset in Durango.

Samsung’s participation, meanwhile, underscores the continued interest of major industrial players in securing critical mineral supply chains.

Offtake financing deals of this nature provide both upfront capital for miners and stable sourcing arrangements for buyers, which is an increasingly common structure in metals markets amid rising demand for silver and other transition-linked minerals.

In recent days the price of silver has reached record highs of US$51 per ounce, alongside sister metal gold which surpassed the US$4,000 level. As the precious metals suite continues to trend higher more sidelined and shuttered projects could be brought online.

Shares of Silver Storm rose 3.30 percent to C$0.235, following the Friday announcement.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.