Silver Bow Mining Corp. agreed to acquire the Jefferson County Metallurgical Complex in Montana for approximately $28.6 million, settling creditor claims through a bankruptcy sale process. The transaction, structured as a staged Chapter 11 sale, includes $4.27 million to Jefferson County and $20.8 million to the Montana Department of Environmental Quality.
The 5,000-acre complex, located about 55 miles northeast of Butte, features two mineral processing circuits with combined capacity of 16,000 tons per day. Circuit 1 handles 15,000 tons daily, while Circuit 2, with 1,000-ton capacity, is suited for processing mineralization from Silver Bow’s Rainbow Block Project.
As part of the deal, Silver Bow will issue a senior secured note to fund creditor payments at initial closing. Upon receipt of required approvals, the company will issue 3.5 million contingent value rights (CVRs). An additional 11.5 million deferred compensation CVRs are tied to exploration, development, and commercial production targets at the historic M-Pit. Of these, 6.25 million convert upon a positive construction decision or nine months after a feasibility study, while 5.25 million convert upon commercial production or 36 months post-construction decision.
The acquisition remains subject to approvals from the U.S. Bankruptcy Court for the District of Montana, Silver Bow shareholders, and the NYSE American. The company plans to host a webcast at 4:00 p.m. ET on the day of the announcement.
