Silver Storm Mining, a Canadian exploration and resource company, has secured multiple non-binding debt and offtake-linked project financing proposals from trading companies to resume operations at the previously operating La Parrilla silver mine in Durango, Mexico.
The financing facilities offered range from C$15m to C$17m, with durations between 36 and 48 months. They feature annual interest rates based on the SOFR three-month rate plus a customary premium.
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The funding is intended to facilitate near-term activities necessary for the mine’s restart, with each proposal also including an associated prepayment or structured finance facility.
However, these proposals are contingent upon several conditions including satisfactory due diligence, compliance, documentation, securing commercial offtake contracts for 100% of production during the facility tenor, acceptable pledge guarantees and credit committee approval.
There is no certainty that definitive agreements will be reached or completed on acceptable terms, if at all.
In March 2025, Silver Storm announced a significant increase in La Parrilla’s mineral resources.
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By GlobalDataThe indicated mineral resources saw a 107% increase from 5.2 million ounces (moz) of silver equivalent (Ag.Eq) to 10.8moz Ag.Eq. The inferred mineral resources grew by 58% from 10.3moz Ag.Eq to 16.3moz Ag.Eq.
The majority of these resources are sulphide mineralisation, with silver contributing to the bulk of the resource’s gross metal value.
Furthermore, 23 additional mineralised structures have been modelled, some of which were previously mined by the former operator, suggesting considerable potential for further resource expansion.
Silver Storm acquired the La Parrilla silver mine complex in August 2023. It comprises a 2,000 tonnes per day capacity mill, five underground mines and an open pit that produced 34.3moz Ag.Eq between 2005 and 2019, collectively.
