Americas Gold And Silver Signs Credit And Off-Take Agreement For EC120 Project; Agreement Provides The Co With A Secured Credit Facility Of Up To $15M To Complete The Pre-Production Development

Author: Benzinga Newsdesk | August 14, 2024 04:15pm

Americas Gold and Silver Corporation (TSX:USA) (NYSE: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 Operations 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 portion of total Company revenue derived from silver to over 80% by the end of 2025, positioning the Company as one of the foremost silver-focused companies in politically stable jurisdictions.

Posted In: TSX:USA USAS