Mr. John Carter reports
SILVER BULLET MINES CORP. OPERATIONAL UPDATE
Silver Bullet Mines Corp. has provided an operational update on the ramp-up of its 125-metric-ton-per-day pilot plant in Arizona, on progress at its Buckeye silver mine in Arizona and on progress at the Washington mine in Idaho.
While processing the lower-grade material from the Buckeye, all components of the Arizona mill continue to perform within parameters. Adjustments continue to be made within those parameters to fine-tune production. As a result the mill is producing silver concentrate and is pouring silver dore bars from this material, while the ramp-up continues. The company intends to introduce higher-grade material from the Buckeye once the mill is operating optimally, to avoid wastage in the tailings.
The silver concentrate and dore bars have been and continue to be shipped to potential purchasers for analysis. All purchases will likely be FOB the mill site.
Occasional challenges are being encountered with the motor and starter for the ball mill. The field team reasonably believes these challenges can be overcome in the near future.
At the Buckeye mine, mineralized material is being extracted from the vein above the decline near the Treasure Room. Silver Bullet is also bolting, screening and adding timber to the adit as part of its ESG (environmental, social and governance) commitment.
In Idaho at the Washington mine, Silver Bullet has begun the process to have the adit timbered and brought to current safety standards. The next step there would be for the contract miner to begin the process of extracting a bulk sample of between 1,500 and 3,000 tons, to be processed at a local mill. Management expects Silver Bullet's capital investment for this process to be relatively minor.
Largely due to COVID the ramp-up of the mill in Arizona has taken longer than anticipated which has had an effect upon the company's anticipated cash flow. With a view to protecting its treasury Silver Bullet is in advanced negotiations to enter into an agreement with its largest institutional shareholder whereby Silver Bullet would borrow $650,000 for an 18-month term. The agreement would provide for an 8-per-cent interest rate and a conversion feature, whereby upon conversion the loan may convert into 2,166,667 units at an effective price of 30 cents per unit. This is at a premium to the current market price. Each unit would consist of one common share and one common share purchase warrant exercisable at 35 cents for a four-year term.
Closing on the agreement is conditional upon regulatory approval.
We seek Safe Harbor.
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