Mr. John Carter reports
SILVER BULLET MINES CORP. (SBMI) PROVIDES UPDATE ON FIRST ORDER FOR SILVER FROM BUCKEYE MINE IN ARIZONA
Silver Bullet Mines Corp. has provided an update on its first order for its silver products from a third party (the purchaser).
The first order, announced in detail on April 17, 2023, and the attendant $225,000 (U.S.) cash advance from the purchaser empowers Silver Bullet to finance the cost of processing the mineralized material from the Buckeye mine without dilution to the shareholders. The purchaser advises it carried out a detailed analysis of the silver dore bar sent earlier and advises it believes there are no material impurities in that bar. If the bar is representative of the silver to be delivered, Silver Bullet would incur a minimal discount to spot prices and there would be no reduction in the amount payable to Silver Bullet due to deleterious metals.
The current order is for 500 kilograms (17,600 ounces), and the purchaser has indicated it intends to order that same amount per month for the foreseeable future. Each such monthly order would represent roughly $400,000 (U.S.) in revenue to Silver Bullet at current spot price for silver.
The debenture referred to in the April 17, 2023, press release would bear interest at the rate of 2 per cent per month on the outstanding principal for one month, which interest begins to accrue after 30 days. If the conversion feature of the Debenture is triggered, the conversion price would be 22 cents per share.
There are approximately 2,500 tons of mineralized material on surface at the Buckeye mine site to be shipped to the mill on an as needed basis. Mining is continuing. As per Silver Bullet's Jan. 16, 2023, press release, Silver Bullet is drifting along the vein to an area believed to contain higher-grade mineralization (see page eight of the geologic report dated Jan. 8, 2021). At the current rate of mining that zone should be intercepted in approximately four weeks, although that timing may vary subject to the usual risks attendant on mining.
Silver Bullet anticipates starting to process the current order this week by processing the material on hand at the mill/mine site, which has earlier returned high grades (see March 3, 2023, press release). Management believes the mill is operating at optimum efficiency.
We seek Safe Harbor.
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