Silver Bow Mining to Acquire Montana Processing Complex for Rainbow Block Silver-Gold-Zinc-Lead Project

Silver Bow Mining announced a definitive asset purchase agreement with Montana Goldfields and Montana Tunnels Mining to acquire the Jefferson County Metallurgical Complex in Montana. Located about 55 miles northeast of Butte, the complex includes separate 15,000 tpd and 1,000 tpd milling and flotation circuits, crushing and ore-storage facilities, tailings facilities, and associated infrastructure across an approximately 5,000-acre land position. At Initial Closing, the company will fund approximately US$28.6 million to satisfy specified creditors, including about US$4.27 million owing to Jefferson County and US$20.8 million owing to Montana DEQ.

Silver Bow Mining said the 1,000 tpd circuit, with certain upgrades, is expected to be suitable for processing high-grade silver-gold-zinc-lead mineralisation from Rainbow Block. The project hosts an inferred resource of 11.48 million short tons grading 14.8 oz/t AgEq, including 4.59% zinc and 1.25% lead, containing 1.05 billion lb of zinc and 287 million lb of lead. The Chapter 11/Section 363 transaction remains subject to Bankruptcy Court approval for Initial Closing and shareholder, NYSE American and other required approvals for Final Closing. At Final Closing, Silver Bow Mining plans to issue 3.5 million Final Closing CVRs, each convertible into one common share 180 days after Final Closing, subject to the applicable terms.