February 19, 2025
Silver X Announces Loan Agreement & Management Update
Vancouver, British Columbia – February 19, 2025 – Silver X Mining Corp. (TSX-V: AGX) (OTCQB: AGXPF) (F: AGX) (“Silver X” or the “Company”), a rapidly growing Peruvian silver producer-developer, is pleased to announce the execution of a loan facility agreement with Trafigura PTE Ltd. (“Trafigura”), a global leader in commodity trading.
The loan provided to Recuperada S.A.C. (“Recuperada”), a wholly owned subsidiary of Silver X, will be used for capital expenditures and working capital. Under the loan facility an amount of up to US$1.4 million is available to Recuperada with a tenor of up to 25 months. Interest payable to Trafigura is based on the secured overnight financing rate (SOFR) plus 6% per annum. The loan facility agreement includes covenants and events of default customary for a transaction of this nature. Silver X will provide a parent company guarantee, and the loan facility will be secured by first-ranking security over mining equipment and concessions owned by Recuperada.
As part of the loan facility, Silver X will also issue a loan bonus of 1,500,000 common share purchase warrants (the “Warrants”) of the Company to an affiliate of Trafigura, Urion Holdings (Malta) Limited. The Warrants are subject to a hold period, under Canadian securities laws, expiring four months and one day from the date of issuance, exercisable for an equivalent of common shares for a period of 25 months at a 25% premium to the 20-day VWAP of Silver X’s shares on the TSX.V as of the day before announcing the signing date. The loan facility agreement and issuance of the Warrants is subject to approval from the TSX Venture Exchange.
Management Update
Silver X announces the retirement of Freddy Mayor, its Chief Operating Officer (COO), who played an important role overseeing operational strategies driving the Company’s growth. Silver X CEO, Jose M. Garcia, remarked, “Freddy’s expertise and commitment have been invaluable in bringing the Tangana Mining Unit into commercial production and advancing the development of the Nueva Recuperada Project. We are thankful and extremely grateful to Freddy for his dedication and contributions. On behalf of the Board of Directors and our entire staff, I wish Freddy the very best in his retirement. In the interim, I will assume the responsibilities of COO, as we continue aligning our resources with our strategic goals, focusing on increasing production and profitability.”
About Silver X
Silver X is a growing silver producer building a multi-asset precious metals platform in Peru. The Company’s portfolio includes the Nueva Recuperada Project, a district-scale land package of 20,795 hectares with three mining units and more than 200 exploration targets, as well as the recently acquired Pampas Project.
With existing production, scalable expansion opportunities, and significant exploration upside, Silver X is positioned for continued growth and long-term value creation. For more information visit our website at www.silverxmining.com.
On Behalf of the Board
José M. García
CEO and Director
For further information, please contact:
Susan Xu
Investor Relations
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Note Regarding Production without Mineral Reserves
The decision to commence production at the Nueva Recuperada Project and the Company’s ongoing mining operations as referenced herein (the “Production Decision and Operations”) are based on economic models prepared by the Company in conjunction with management’s knowledge of the property and the existing estimate of mineral resources on the property. The Production Decision and Operations are not based on a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the Production Decision and Operations, in particular: the risk that mineral grades will be lower than expected; the risk that additional construction or ongoing mining operations are more difficult or more expensive than expected; and production and economic variables may vary considerably.
Cautionary Statement Regarding “Forward-Looking” Information
This press release contains forward looking information within the meaning of applicable Canadian securities legislation (“forward looking information”). Forward looking information is generally identified by words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “targets”, “believes”, or similar expressions, including statements that certain events or results “may”, “could”, “would” or “will” occur. All statements other than historical facts constitute forward looking information, including, without limitation, statements regarding the filing of a technical report, an updated PEA, the evaluation of processing capacity beyond 3,000 tpd, the production profile contemplated in the 2025 PEA including average and peak annual production, the suitability of bulk underground mining methods and their expected costs, mine life, the achievement of a 1,000 tpd run rate, the timing of permits including the ESIA update to 1,500 tpd, future drilling and the conversion of Inferred resources, financing discussions, and the Company’s growth plans.
Forward looking information is based on a number of assumptions, including that general economic and business conditions will not materially worsen; commodity demand and prices will remain stable or improve; required permits and approvals will be obtained on a timely basis; operations will not be materially disrupted by accidents, labour issues or equipment failures; financing will be available; equipment and supplies will be accessible as needed; resource estimates and underlying assumptions (including size, grade and recovery) are reasonable; and the Company will be able to attract and retain qualified personnel and execute its strategic objectives.
Forward looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward looking information, including but not limited to those risks described in the Company’s annual and interim MD&As and in its public documents filed on www.sedarplus.ca from time to time. Readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.
