Silver Storm Sells Non-Core Capped Royalty in Nevada, USA
MWN-AI** Summary
Silver Storm Mining Ltd. has announced the sale of its non-core capped production gross royalty on the Springer Mine & Mill property in Nevada, USA, for a total of C$2,183,000 in cash. This royalty was acquired during Silver Storm's purchase of Till Capital Corp. in 2025, where it was part of a larger portfolio that included four mining royalties. The Springer Royalty itself is capped at US$2,500,000. Greg McKenzie, President and CEO of Silver Storm, stated that the sale was a strategic move aimed at monetizing non-core assets to enhance financial flexibility ahead of a potential restart of operations at the La Parrilla Silver Mine Complex by the second quarter of 2026.
The company is actively working toward reinitiating production at the La Parrilla Silver Mine, which includes a 2,000 tonnes per day mill and three underground mines. Additionally, Silver Storm holds a 100% interest in the San Diego Project, recognized as one of the largest undeveloped silver assets in Mexico. The sale of the Springer Royalty provides an influx of cash while allowing the company to focus its resources on its key silver projects, particularly given that production decisions at La Parrilla have not yet been supported by comprehensive mineral reserve studies.
Silver Storm Mining warns that forward-looking statements regarding its plans, including the potential of restarting La Parrilla, involve risks and uncertainties that could impede actual results from meeting anticipated outcomes. The company highlights the absence of established mineral reserves and the inherent challenges facing mining operations, stressing that production commencement and levels are still uncertain.
For more information on Silver Storm Mining Ltd. and its projects, visit their website at www.silverstorm.ca.
MWN-AI** Analysis
Silver Storm Mining Ltd.'s recent sale of the non-core Springer Royalty for C$2,183,000 marks a noteworthy strategic move, providing the company with enhanced liquidity as it prepares for the potential restart of operations at its La Parrilla Silver Mine Complex. This divestiture is particularly significant given the context of rising operational costs and market pressures, allowing Silver Storm to streamline its asset portfolio while generating immediate cash flow.
From an investor's perspective, the sale indicates management's proactive approach toward financial flexibility, especially with future plans to restart La Parrilla, an essential asset poised to boost production potential. While the company has yet to establish mineral reserves at La Parrilla, the revenue from the royalty sale could facilitate the necessary investments into feasibility studies or operational enhancements that would ultimately underpin a successful mine restart.
Given current silver market dynamics—where prices have shown resilience due to increasing industrial demand and macroeconomic factors—investors may want to keep a close watch on Silver Storm's liquidity position and operational readiness as they prepare for future developments. Should the company effectively channel proceeds from the royalty sale into advancing La Parrilla, it could enhance the project's economic viability, aligning with investor sentiment seeking growth opportunities in the precious metals sector.
Investors should cautiously consider the risks highlighted in the company's forward-looking statements. Without the benefit of established mineral reserves or comprehensive feasibility studies, the path to production remains uncertain. As such, while the recent royalty sale improves balance sheet health, it is essential for potential investors to monitor ongoing developments closely, particularly regarding La Parrilla's operational timelines and costs, thereby making informed decisions in a volatile market landscape.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Silver Storm Mining Ltd. (“ Silver Storm ” or the " Company ") (TSX.V: SVRS | OTCQX: SVRSF | FSE: SVR) is pleased to announce the sale of the non-core capped production gross royalty on the Springer Mine & Mill property (the “Springer Royalty” ) in the state of Nevada, USA for gross proceeds of C$2,183,000 in cash.
The Company acquired the Springer Royalty as part of the acquisition of 100% of the issued and outstanding common shares of Till Capital Corp. ( “Till” ) in 2025 (see the news release titled “Silver Storm Mining and Till Capital Corporation Announce Completion of Plan of Arrangement” and published on July 18, 2025). Till’s royalty portfolio consisted of four mining royalties, including the Springer Royalty which is capped at US$2,500,000.
Greg McKenzie, President and CEO, commented, “Silver Storm acquired Till at a transaction value of C$7,200,000, which incorporated ~C$6,200,000 in cash held by Till prior to the closing of the transaction, implying a valuation of ~C$1,000,000 for Till’s portfolio of mineral investments and royalties. The Springer Royalty sale represented an opportunity to monetize one of our non-core royalty assets while adding financial flexibility and additional liquidity ahead of the potential restart of operations at the La Parrilla Silver Mine Complex in the second quarter of 2026.”
About Silver Storm Mining Ltd.
Silver Storm Mining Ltd. holds advanced-stage silver projects located in Durango, Mexico. Silver Storm is committed to advancing toward a potential near-term restart of its 100% owned La Parrilla Silver Mine Complex, a prolific operation comprised of a 2,000 tpd mill and three underground mines. The Company also holds a 100% interest in the San Diego Project, which is among the largest undeveloped silver assets in Mexico. For more information regarding the Company and its projects, please visit our website at www.silverstorm.ca .
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements:
Certain statements in this news release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of the phrase ‘forward-looking information’ in the Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations. Forward-looking statements are not comprised of historical facts. Forward-looking statements include estimates and statements that describe the Company’s future plans, objectives or goals, including words to the effect that the Company or management and Qualified Persons (in the case of technical and scientific information) expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to the Company, the Company provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information. Forward-looking information in this news release includes but is not limited to: the Company's plans and expectations for La Parrilla and the timeline and ability to put the La Parrilla Silver Mine Complex back into operation.
In making the forward-looking statements included in this news release, the Company have applied several material assumptions, including: no unexpected or adverse regulatory changes with respect to the trading of its common shares, and that the decision to potentially place La Parrilla into production, and any related production decisions are largely based on internal Company data and reports from previous operations and have not been supported by mineral reserve estimates prepared in accordance with NI 43-101, preliminary economic assessments, pre-feasibility or feasibility studies that demonstrate economic and technical viability. As a result, there is increased uncertainty and a higher degree of economic and technical risk associated with any such production decision than would be the case if such mineral reserves estimates or studies were completed and relied upon to support a production decision. No mineral reserves have been established for La Parrilla, and mineral resources that are not reserves do not have demonstrated economic viability. The absence of mineral reserve estimates prepared in accordance with NI 43-101, preliminary economic assessments, pre-feasibility or feasibility studies supporting a production decision increases the uncertainty of achieving any particular level of mineral recovery or the cost of such recovery, and heightens the risks associated with developing a commercially mineable deposit. Historically, projects advanced without the support of such mineral reserves estimates and studies have experienced a significantly higher incidence of economic and technical failure. There can be no assurance that production at La Parrilla will commence as anticipated or at all, or that any anticipated production levels or operating costs will be achieved. A failure to commence production would have a material adverse effect on the Company’s ability to generate revenue and cash flow to fund its operations. Similarly, a failure to achieve anticipated production costs would have a material adverse effect on the Company’s cash flow and future profitability.
Forward-looking statements and information are subject to various known and unknown risks and uncertainties, many of which are beyond the ability of the Company to control or predict, that may cause the Company’s actual results, performance or achievements to be materially different from those expressed or implied thereby, and are developed based on assumptions about such risks, uncertainties and other factors set out herein.
Such forward-looking information represents managements and Qualified Persons (in the case of technical and scientific information) best judgment based on information currently available. No forward-looking statement can be guaranteed, and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218577281/en/
Greg McKenzie, President & CEO
Ph: +1 (416) 504-2024
info@silverstorm.ca
FAQ**
How does the sale of the Springer Royalty enhance Silver Storm Mining Ltd. Com SVRSF's financial flexibility and support its strategy for the La Parrilla Silver Mine Complex restart scheduled for Q2 2026?
What impact does the valuation of ~C$1,000,000 for Till’s portfolio have on Silver Storm Mining Ltd. Com SVRSF’s overall financial health and investment attractiveness?
Considering the lack of established mineral reserves at La Parrilla, what measures is Silver Storm Mining Ltd. Com SVRSF taking to mitigate the risks of the expected operations restart?
How does Silver Storm Mining Ltd. Com SVRSF plan to utilize the proceeds from the Springer Royalty sale to advance its projects, particularly in light of the uncertainties highlighted in their forward-looking statements?
**MWN-AI FAQ is based on asking OpenAI questions about Silver Storm Mining Ltd Com (OTC: SVRSF).
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