Silverco Announces Agreement to Acquire Nuevo Silver and the La Negra Mine
Silverco Mining Ltd. (TSXV: SICO) (“Silverco” or the “Company“) announces that it has entered into a binding letter (the “Binding Letter“) dated January 19, 2026, providing for the acquisition by the Company of an arm’s length party, Nuevo Silver Inc. (“Nuevo Silver“).
The Binding Letter contemplates that the acquisition will be affected by way of a three-cornered amalgamation, pursuant to which Nuevo Silver will amalgamate with a wholly-owned subsidiary of Silverco, and the existing shareholders of Nuevo Silver will be issued common shares of Silverco (each, a “Silverco Share“) in consideration for common shares of Nuevo Silver (each, a “Nuevo Silver Share“) presently held (the “Acquisition“).
Transformational Transaction for Silverco
Silverco is acquiring Nuevo Silver, which recently entered into a Share Purchase Agreement with a party arm’s length to Silverco and Nuevo Silver, to acquire 100% of the producing La Negra Silver Mine in Querétaro Mexico (the “La Negra Mine“).
The Acquisition provides several benefits to Silverco, including:
- Immediate production and cash flow
- ~US$8M in cash
- Diversifying Silverco’s asset base
- Adding an established operating team in Mexico
Mark Ayranto, CEO of Silverco, commented: “The acquisition of Nuevo Silver and the La Negra Mine is a transformative milestone that immediately shifts Silverco from a developer into a cash-flowing producer. La Negra is currently operating at approximately 55% capacity, providing a robust foundation of existing cash flow that we see a clear pathway to build upon by significantly increasing throughput during the remainder of 2026. This accretive acquisition delivers immediate shareholder value and, when combined with our wholly-owned Cusi Property, which we expect to return to operation in the second half of 2026, accelerates our vision to become a 10M oz AgEq producer within 3 years.”
Acquisition Deal Terms
Holders of Nuevo Silver Shares will be issued an aggregate of 16,802,316 Silverco Shares pursuant to the Acquisition. Upon completion of the Acquisition, based on the total number of currently issued and outstanding Silverco Shares, former holders of Nuevo Silver Shares will hold approximately 34% of the outstanding Silverco Shares, and the existing holders of Silverco Shares will hold approximately 66% of the outstanding Silverco Shares. Silverco will also assume approximately US$11M in debt associated with the La Negra Mine, US$12.5M in milestone payments due in Q1 2027 and US$5M in contingent payments potentially due between Q1 2027 and Q1 2028.
Silverco and Nuevo Silver have agreed to diligently and in good faith negotiate a definitive agreement (the “Definitive Agreement“) regarding the Acquisition; however, the terms of the Binding Letter will govern the transaction in the event that a Definitive Agreement is not executed.
Closing of the Acquisition is subject to a number of customary conditions, including all necessary consents, approvals, and other authorizations of any…
