Silver Bow Mining Corp. (NYSE American: SBMT) agreed to acquire the Jefferson County Metallurgical Complex in Montana for $28.6 million through a Chapter 11 bankruptcy sale process. The transaction, announced on August 24, 2026, involves cash payments to creditors totaling $24.1 million, including $4.27 million to Jefferson County and $20.8 million to the Montana Department of Environmental Quality.
The 5,000-acre complex near Butte, located approximately 55 miles northeast of the city, comprises two mineral processing circuits with a combined capacity of 16,000 tons per day. One circuit handles 15,000 tpd, while the smaller 1,000 tpd circuit is expected to process mineralization from Silver Bow’s Rainbow Block Project.
The deal is structured in stages. At the initial closing, Silver Bow will fund creditor payments in exchange for a senior secured note. Upon receiving necessary approvals, the company will issue 3.5 million contingent value rights (CVRs). An additional 11.5 million deferred compensation CVRs are tied to future milestones related to the historic M-Pit, including exploration, development, and commercial production targets.
Specifically, 6.25 million CVRs will convert upon a positive construction decision or nine months after completing a feasibility study, while 5.25 million CVRs convert upon commercial production or 36 months following a construction decision. The seller, Montana Tunnels Mining Inc., filed for bankruptcy protection on July 27, 2026.
The transaction remains subject to approval by the U.S. Bankruptcy Court for the District of Montana, Silver Bow shareholders, and NYSE American. A webcast detailing the acquisition was scheduled for 4:00 p.m. ET on the announcement date.
