Americas Gold & Silver: Crescent Mine Acquisition Positions Company for Major Production Growth

Company Transforms Idaho Operations Through Strategic Regional Consolidation

Americas Gold and Silver Corporation announced the completion of its acquisition of the Crescent Silver Mine on December 13, 2025, executing a transaction that fundamentally reshapes the company's operational footprint in Idaho's historic Silver Valley mining district. The purchase price of US$20 million in cash plus approximately 11.1 million common shares valued at US$45 million represents a strategic consolidation play that leverages existing infrastructure while adding significant near-term production potential.

The Crescent Mine sits approximately nine miles from Americas' 100%-owned Galena Complex, creating immediate operational synergies that distinguish this acquisition from typical mining transactions. According to a 2015 preliminary economic assessment by Tetra Tech, the property contains historical mineral resource estimates of 3.8 million ounces of silver at 19.1 grams per tonne (655 g/t) in the Measured and Indicated category, plus an additional 19.1 million ounces at 19.4 grams per tonne (665 g/t) in the Inferred category. While the company notes a qualified person has not verified this historical estimate as current mineral resources or reserves, the figures provide context for the asset's scale and potential.

The transaction was funded through heavily oversubscribed bought deal financing of US$132 million, with 85% participation from new shareholders according to company disclosures. This financing structure demonstrates institutional confidence in the strategic rationale while providing capital for restart activities and ongoing development at both the Crescent and Galena operations. The deal closed on December 12, 2025, with Americas immediately beginning restart preparations at the previously idled Crescent facility.

High-Grade Silver Asset Complements Existing Processing Infrastructure

The Crescent Mine's geology and existing infrastructure create multiple pathways for value realization within Americas' consolidated Idaho operations. The property includes a fully permitted underground mine on 100% privately owned land, complete with existing infrastructure including mine offices, shops, warehouses, access roads, core storage facilities, and permanent power connections. This turnkey aspect significantly reduces the capital requirements and timeline typically associated with mine development projects.

Processing flexibility represents a key strategic advantage of the acquisition. Crescent ore can be processed through either the Galena mill, which operates at 750 tonnes per day capacity, or the Coeur mill with 500 tonnes per day capacity. This optionality allows Americas to optimize processing schedules, manage mill utilization rates, and adapt to varying ore characteristics from different mining areas. The company's combined processing capacity of 1,558 tonnes per day across both facilities provides substantial room for throughput growth, with Q3 2025 utilization at just 408 tonnes per day.

Underground development at Crescent includes approximately 12,000 feet of drifts, three adits, a decline, and portal access that provide multiple entry points to the ore body. The mine features extensive infrastructure including a 2,000 kVA electrical substation and heavy fabrication facilities with CNC machine capabilities. Only two veins the South and Alhambra have been historically targeted for production among multiple identified mineralized structures, suggesting significant exploration upside across the property's largely unexplored landholding of more than 2,100 feet of potential strike extension to the west.

Antimony Byproduct Revenue Creates Strategic Differentiation

Americas' position as the largest active antimony producer in the United States adds a critical revenue diversification element that distinguishes the company within the silver mining sector. The Galena Complex produced approximately 450,000 pounds of antimony in the first three quarters of 2025, with metallurgical breakthrough work achieving 99% antimony recovery rates from copper concentrate a significant technical accomplishment that unlocks previously untapped revenue potential.

Antimony market dynamics have shifted dramatically due to global supply constraints and industrial demand for the strategic metal. China, which historically supplied the majority of global antimony, implemented export controls in 2024 to safeguard domestic industrial supply chains, creating tightness in international markets. The company estimates uncaptured antimony revenue at Galena's existing operations at approximately US$500 million based on antimony pricing assumptions outlined in corporate materials.

Paul Huet, Chairman and CEO, Americas Gold and Silver stated:

"The massive opportunity at Galena Complex is that recent tests show proven modern processes can upgrade the antimony concentrate, create a marketable product, and unlock the value of existing operations. Refining antimony locally in the U.S., such as a potential Idaho facility, could yield higher revenue from antimony byproduct production."

The company has initiated Phase 3 commercial recovery testwork and evaluation of potential domestic refining options to monetize antimony production. A five-year offtake agreement secured in June 2025 provides market access while the company develops longer-term strategic partnerships. This antimony revenue stream creates a natural hedge within the company's revenue mix, as antimony prices often move independently of precious metals markets due to distinct industrial demand drivers.

Operational Momentum Builds Across Idaho Asset Portfolio

Americas has executed a series of operational improvements at the Galena Complex that demonstrate the management team's capacity to drive productivity gains and cost reductions. Phase 1 upgrades to the No. 3 Shaft hoisting system, completed in September 2025, doubled skipping capacity from approximately 40 tonnes per hour to 80 tonnes per hour. The company upgraded the hoist motor from 1,750 horsepower to 2,250 horsepower while adding a spare motor to significantly de-risk operations by providing backup capacity.

Long hole stoping mining methods were successfully introduced at Galena in Q2 2025, representing the first approximately 3-4 foot wide stope blasted in many years at the operation. This mining technique offers approximately 60% lower costs per tonne at similar dilution levels compared to traditional underhand cut and fill methods, while also minimizing safety risks through top-drift drilling and off-shift blasting. The productivity improvements enable potential rapid scale-up of ore production leveraging existing infrastructure and a planned paste fill plant to support larger mining operations.

New mobile equipment deployments are enhancing underground productivity across the operation. More than 10 pieces of new equipment, including long hole drills, have been commissioned at Galena following disassembly, lowering, reassembly, and commissioning processes. Phase 2 upgrades to the No. 3 Shaft are advancing, with plans for a new hoisting control console with advanced technology, brake and hoist pad upgrades to improve loading and dump zone efficiencies, and new radio communication plus semi-automated cages for safety and efficiency improvements.

Exploration success has opened new high-grade mining areas at the Galena Complex. Drilling from the 5200 Level defined a new silver-copper vein discovery measuring 3.44 meters at 983 grams per tonne silver with 0.74% copper, creating a new mining zone in the previously underexplored 034 vein structure. Separately, drilling from the 4300 Level identified a high-grade copper-silver-antimony vein extension on the 149 vein, with intercepts including 0.21 meters at 24,913 grams per tonne silver and 16.9% copper. These discoveries demonstrate the ongoing exploration potential within the company's existing operations.

Silver Market Dynamics Support Long-Term Investment Thesis

Silver's 144% gain in 2025 reflected a confluence of macroeconomic factors including inflation concerns, political uncertainty surrounding trade policy, and large fiscal deficits that drove investor demand for precious metal hedges. While silver significantly outperformed gold's 64% gain during the same period, the metal's dual character as both a monetary asset and industrial commodity creates distinct demand drivers that differentiate it within the precious metals complex.

Industrial applications for silver including electronics manufacturing, solar panels, and various technological uses provide structural demand that exists independently of monetary considerations. This industrial demand component historically creates supply tightness during periods of economic growth, while the metal's safe-haven characteristics support prices during periods of economic uncertainty. The combination of these demand drivers contributed to silver's outsized performance in 2025 and continues to support the long-term investment case for silver-focused producers.

Americas Gold and Silver's revenue mix reflects this favorable market positioning, with silver representing over 80% of company revenue as of 2025, making it the second-highest silver exposure globally among publicly traded mining companies. This pure-play silver exposure positions the company to capture the full benefit of continued strength in silver prices while the antimony byproduct revenue provides diversification that reduces dependence on any single commodity.

Market analysts caution that repeating silver's triple-digit percentage gains in 2026 would be unprecedented based on historical return patterns, with long-term compound annual returns for silver historically in the mid-single digit percentage range. However, the structural drivers supporting silver demand including industrial applications, investment demand, and ongoing global supply constraints continue to support constructive price outlooks for silver-focused producers with high-quality assets and operational execution capabilities.

Management Track Record Demonstrates Value Creation Capability

The Americas Gold and Silver management team brings proven experience in mining company turnarounds and value creation, a critical consideration for investors evaluating the company's ability to execute on the Crescent acquisition and Galena optimization plans. Chairman and CEO Paul Huet previously served as Chairman and CEO of Karora Resources from 2008 until its 2024 merger with Westgold Resources, a transaction valued at C$2.1 billion that represented an 804% premium to the GDXJ gold mining ETF during his tenure.

Chief Operating Officer Mike Doolin contributed significantly to operational improvements at major mining operations throughout his 35-year career. During his service as Senior Vice President of Technical Services at Karora Resources, he significantly increased Karora's throughput from 340,000 tonnes per annum to 1.6 million tonnes per annum. His operational expertise spans roles at Silver Elephant Mining, Great Basin Gold, and McClelland Labs, providing deep technical knowledge applicable to the Idaho operations.

The board of directors includes individuals with extensive mining finance, operations, and capital markets experience. Director Tara Hassan previously served as Senior Vice President of Corporate Development at SilverCrest Metals from 2020-2025, leading the company's $1.5 billion sale to Coeur Mining. Her mining engineering background and capital markets expertise complement the operational focus of other team members. The board's composition reflects a balance of technical, financial, and governance expertise relevant to the company's growth phase.

Management and directors collectively own approximately 7% of outstanding shares according to company filings, creating alignment with external shareholders. This insider ownership, combined with the heavily oversubscribed financing that brought significant new institutional shareholders into the register, demonstrates confidence in the company's strategic direction and the Crescent acquisition's value creation potential.

Financial Position Supports Growth Capital Requirements

Americas Gold and Silver's balance sheet was strengthened substantially through the US$100 million long-term debt package secured in June 2025, combined with the US$1.5 million equity investment from strategic partners Teck Ocean Strategic Partners. This financing provided capital to fund the paste fill plant development at Galena, implement long hole stoping mining methods, deploy new equipment, and execute the No. 3 Shaft upgrades while maintaining financial flexibility for the Crescent acquisition.

The company reduced liabilities by over US$35 million to date through the debt refinancing and liability management initiatives, improving financial flexibility as production scales. The long-term debt structure provides predictable capital costs while avoiding near-term refinancing risks that could constrain operational flexibility during the critical restart and ramp-up phases at both the Crescent and Galena operations.

Third quarter 2025 results demonstrated improving operational momentum, with silver production growth of 98% year-over-year to 0.73 million ounces, representing a silver equivalent production of 1.22 million ounces. This marked the first time Americas reported antimony and copper production as byproducts, with approximately 450,000 pounds of antimony and 620,000 pounds of copper produced in the first three quarters of 2025. The company's disclosure noted that metallurgy shows antimony and copper upside at Galena with excellent antimony recovery results of 99%+ from copper concentrate.

The Cosalá Operations in Mexico continue to provide stable cash flow that supports the Idaho growth initiatives. Full EC120 Mine production is expected by year-end 2025, with plans to increase annual silver production to approximately 2.5 million ounces over five years at a targeted all-in sustaining cost of US$10-12 per silver ounce. The Mexican operations provide geographic diversification while the Idaho assets offer the higher-grade production profile and antimony byproduct optionality that drive the investment thesis.

Technical Review Validates Crescent Resource Potential

The Crescent Mine acquisition includes a historical mineral resource estimate prepared by Tetra Tech in a 2015 preliminary economic assessment that outlined the property's scale and grade characteristics. While Americas emphasizes that a qualified person has not completed sufficient verification work to classify this historical estimate as current mineral resources or reserves under National Instrument 43-101 standards, the figures provide important context for investors evaluating the asset's potential.

The Measured and Indicated category historical estimate of 3.8 million ounces at 19.1 grams per tonne silver (655 g/t) with associated copper mineralization provides a foundation for near-term mine planning and development work. The Inferred category historical estimate of 19.1 million ounces at 19.4 grams per tonne silver (665 g/t) suggests significant growth potential as the company completes exploration drilling and resource definition work to convert these ounces to higher-confidence categories.

Less than 5% of the Crescent landholding has been explored historically, with only two veins the South and Alhambra targeted for previous production activities. Over 2,100 feet of potential strike extension to the west remains open at depth, offering exploration upside that could materially expand the resource base over time. A US$3.5 million exploration drilling program planned for 2026 will test these underexplored areas and provide data to support updated mineral resource estimates.

The comparison to neighboring operations provides additional context for Crescent's position within the Silver Valley mining district. Among the shallowest mines in the Silver Valley, Crescent and Galena offer significant remaining depth potential, with most neighboring operations extending considerably deeper below surface. This suggests potential for vertical extensions of known mineralization as drilling systematically tests depth extensions of the identified vein systems.

Investment Thesis for Silver-Antimony Production Growth

• Crescent acquisition adds potential 1.4-1.6 million ounces annual silver output, nearly tripling current production profile with existing permitted infrastructure.
• 99% recovery rates unlock estimated significant uncaptured revenue from existing Galena operations based on company antimony pricing assumptions.
• Combined 1,558 tpd processing capacity currently utilized at just 408 tpd provides 282% expansion potential without major capital investment.
• 80%+ revenue from silver represents second-highest exposure globally among producers, capturing full benefit of continued precious metals strength.
• Proven track record includes C$2.1B Karora-Westgold merger (+804% vs GDXJ) and successful operational turnarounds across multiple mining operations.
• Regional asset clustering in Silver Valley creates shared infrastructure advantages and G&A synergies competitors cannot replicate without similar acquisitions.

Americas Gold and Silver's acquisition of the Crescent Silver Mine represents a transformational transaction that addresses multiple strategic objectives simultaneously. The deal consolidates high-grade silver assets within a single mining district, creates immediate operational synergies through shared processing infrastructure, and positions the company as the dominant operator in Idaho's historic Silver Valley. The heavily oversubscribed financing that funded the acquisition, with 85% participation from new institutional shareholders, validates the strategic rationale and demonstrates market confidence in management's execution capabilities.

The antimony opportunity distinguishes Americas within the silver mining sector and provides a natural hedge through commodity diversification. With breakthrough metallurgical work achieving 99% antimony recovery rates and significant estimated uncaptured revenue potential based on company pricing assumptions, the antimony byproduct stream could materially enhance economics across the Idaho operations. As the largest active antimony producer in the United States during a period of Chinese export restrictions and global supply tightness, Americas holds a unique strategic position in a critical minerals market.

Operational momentum at the Galena Complex, demonstrated through successful long hole stoping introduction, doubled hoisting capacity from 40 to 80 tonnes per hour, and high-grade vein discoveries, provides confidence in management's ability to execute similar improvements at Crescent. The technical and operational challenges of restarting an idled mine are well understood, but Americas' track record of productivity gains at Galena and the team's experience with mining turnarounds at previous companies suggest the company possesses the capabilities required for successful execution. Investors should monitor progress on the planned US$3.5 million Crescent exploration program and Phase 2 No. 3 Shaft upgrades at Galena as key milestones for validating the growth thesis during 2026.

TL;DR

Americas Gold and Silver acquired Idaho's Crescent Silver Mine for US$65M, adding potential 1.4-1.6 Moz/year silver production to existing Galena operations. Deal creates largest U.S. antimony producer with 99% recovery rates unlocking estimated significant revenue. Heavily oversubscribed financing (85% new shareholders) funds restart. Silver represents 80%+ of revenue, second-highest exposure globally among miners.

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