Mergers & Acquisitions ·
Silver Bow Mining Corp. entered into an asset purchase agreement to acquire the Montana Tunnels Mine and Diamond Hill…
SBMTSilver Bow Mining Corp.
Silver Bow Mining Corp. entered into an asset purchase agreement to acquire the Montana Tunnels Mine and Diamond Hill Mill assets from Montana Goldfields Inc. through a Chapter 11 sale process. The company will fund approximately $28.6 million in escrow to satisfy specified creditors, including $4.27 million to Jefferson County and $20.8 million to the Montana Department of Environmental Quality. In exchange for this cash payment, Silver Bow Mining will receive a senior secured promissory note from Montana Goldfields. At final closing, the company will issue 3,500,000 contingent value rights convertible into common shares and 11,500,000 deferred compensation CVRs tied to future M-Pit milestones. The transaction also includes a 2% net smelter return royalty, toll milling agreements, and net profits interests for tailings and placer mining operations. Silver Bow Mining Corp. is a minerals exploration company advancing the high-grade Rainbow Block Silver-Zinc Project in Montana's historic Butte Mining District.