Silver Storm Begins Sulphide Circuit Commissioning at La Parrilla

Canada-based Silver Storm Mining Ltd. has initialized hot commissioning of the sulphide processing flotation circuit at the La Parrilla Silver Mine Complex in Durango, Mexico. Backed by a US$5 million term loan from First Majestic Silver Corp. and restructured prepayment timelines with Samsung C&T, the operational restart stabilizes production using existing mineralized stockpiles. This development impacts silver and base-metal extraction markets by restoring past-producing assets through optimized brownfield infrastructure and targeted underground expansion.

________

Canada-based Silver Storm Mining commenced hot commissioning of the sulphide processing circuit at its La Parrilla Silver Mine Complex in Durango. The introduction of mineralized material into the differential flotation system tests the circuit under real operational conditions to generate silver-rich lead concentrate and zinc concentrate. This advancement follows the activation of the parallel oxide circuit, representing the concluding technical sequence required to achieve full commercial functionality at the asset.

The initiation of this testing phase addresses the long-term production objectives established during the initial property evaluation. Greg McKenzie, President and CEO, Silver Storm Mining, highlighted the operational progress achieved by the engineering group since the completion of the asset purchase. “The start of hot commissioning of the sulphide circuit marks an important milestone for the company. Reaching this milestone less than 3 years after closing the acquisition of La Parrilla is a tremendous achievement for the Silver Storm team. With the first doré pour from the oxide circuit completed recently and hot commissioning of the sulphide circuit underway, we are now in the final stages of the operational restart at La Parrilla," he added.

The recovery of base and precious metals from brownfield projects remains a primary development strategy within the Mexican extraction sector, enabling corporations to bypass the lengthy lead times associated with greenfield discoveries. According to an infrastructure review by MBN, the revival of the past-producing La Parrilla Silver Mine Complex brings a 2,000t/d milling plant back into operation after remaining idle since September 2019. The historical deposit architecture, consisting of 40 adjacent mining concessions covering 38,128 hectares, yielded 34.3Moz AgEq between 2005 and 2019 under previous operations before low commodity valuations forced care and maintenance procedures. Current works executed by the enterprise expand the sulphide circuit capacity from 1,000t/d to 1,250t/d through the integration of 8 new flotation cells. A report from MBN confirms that regulatory de-risking advanced concurrently, as the Ministry of Environment and Natural Resources (SEMARNAT) issued authorizations for 62 new drill pads and 27 access roads, while extending the operational permit of the existing tailings storage facility for an additional 10-year period beyond 3Q26.

To support the current commissioning phase, the processing facility will draw initial feed from the existing high-grade surface stockpile. The processing plant will rely on this storage reserve until underground mine extraction within the Quebradillas and Rosarios sectors provides ongoing access to run-of-mine mineralized sulphide material. The mobilization of underground development contractors accelerated heading into 2026 to prepare these zones. Corporate financial structures were adjusted to match this operational ramp-up timeline, resulting in an agreement with Samsung C&T Hong Kong Ltd. and QSSC, to amend the existing concentrate prepayment framework. The amendment shifts the initial principal and arrangement fee payment schedule from May 2026 to September 2026, deferring subsequent monthly payments by a corresponding 4-month period and extending the related concentrate supply commitment by 6 months to a total of 30 months.

Additional working capital was secured via a non-dilutive loan transaction with Canada-based First Majestic Silver, which advanced an unsecured term loan totaling US$5 million on July 10, 2026. The capital injection carries an annual interest rate of 15% compounded quarterly and features a maturity timeline of 36 months. Accumulating interest from the initial 12 months will become due as a single payment at the first anniversary, after which interest and principal repayments will follow quarterly intervals. The absolute principal will be amortized over 8 equal quarterly instalments of US$625,000, with the initial payment scheduled for 15 months following the closing date. The combination of deferred commercial obligations and immediate credit liquidity secures the fiscal runway necessary to stabilize full plant capacity.