Americas Gold & Silver Acquires Crescent Mine

• Americas Gold and Silver Corporation closed the Crescent Silver Mine acquisition on December 12, 2025, for US$65 million (US$20 million cash plus 11.1 million shares), adding a fully permitted past producer located 9 miles from its flagship Galena Complex in Idaho's historic Silver Valley.
• Crescent brings 22.9 million ounces of historical silver resources with identical tetrahedrite mineralization to Galena, enabling immediate processing synergies and potential annual production of 1.4 to 1.6 million ounces of silver.
• Americas generates 87% of revenue from silver, the second-highest exposure globally among producers, positioning the company to benefit from structural market dislocations driving higher silver prices through 2026.
• Backed by billionaire investor Eric Sprott (14% shareholder) and fresh US$132 million financing completed in October 2024, the company possesses sufficient capital to advance development at both Crescent and Galena without near-term dilution.
• The company operates America's largest active antimony mine at Galena, with breakthrough 99.8% antimony recovery metallurgy unlocking approximately US$10 million in annual by-product revenue potential at current antimony prices of US$50,000 per tonne.

The silver market enters 2025 facing persistent supply dislocations that analysts expect will drive prices higher before any meaningful pullback. Physical inventories at major global exchanges have contracted despite rising futures interest, creating a disconnect between paper markets and available metal. For Americas Gold and Silver Corporation, this environment presents a strategic opportunity, particularly following its December 12, 2025 acquisition of Idaho's Crescent Mine, which positions the company to capitalize on structural silver market tightness with high-grade North American production assets.

The Crescent transaction represents more than simple mine consolidation. By acquiring a fully permitted past producer located 9 miles from its Galena Complex, Americas gains immediate operational synergies, existing infrastructure, and potential annual production of 1.4 to 1.6 million ounces of silver. The deal adds 3.8 million ounces of historical Measured and Indicated silver resources and 19.1 million ounces of Inferred resources to a portfolio already generating 87% of revenue from silver, the highest exposure among comparable producers globally.

This strategic acquisition coincides with favorable market dynamics across multiple fronts. Industrial silver demand continues rising from solar panel manufacturing, electric vehicles, and AI data center infrastructure. Investment demand through ETFs and physical accumulation has intensified supply pressures. Simultaneously, Americas operates the United States' largest active antimony mine at a time when domestic critical mineral production receives heightened strategic importance.

Company Overview

Americas Gold and Silver Corporation operates a focused portfolio of high-grade precious metals assets across the United States and Mexico, with particular emphasis on silver and the critical mineral antimony. The Toronto and New York-listed company completed full consolidation of its Galena Complex in Idaho during December 2024 through a transaction with Eric Sprott, who subsequently became the company's largest shareholder at approximately 20%. This ownership structure signals institutional confidence, with over 70% of shares held by institutions and insiders including major resource-focused investment firms.

The company's Idaho operations consist of the Galena Complex, comprising the Galena mine and processing facilities, and the newly acquired Crescent Mine. Both properties sit in Idaho's historic Silver Valley, one of North America's most prolific silver-producing districts. The Galena Complex produced over 25 million ounces of silver historically, with peak production reaching 5.2 million ounces in 2002 at grades averaging 729 grams per tonne. Current operations at Galena delivered average head grades of 496 grams per tonne in 2025 year-to-date, placing it among the world's highest-grade active silver mines.

In Mexico, Americas operates the Cosalá Operations in Sinaloa state, which produced 0.73 million ounces of silver (1.22 million ounces silver equivalent) through the first three quarters of 2025. The operation is transitioning from the San Rafael mine to the higher-grade EC120 mine, expected to reach full commercial production by year-end 2025. Cosalá provides steady cash flow while the company scales its Idaho platform following the Crescent acquisition.

The Crescent Mine Acquisition

The Crescent Mine acquisition closed December 12, 2025, with consideration consisting of US$20 million in cash and approximately 11.1 million common shares of Americas, valuing the transaction at approximately US$65 million based on US$4.00 per share. The mine is located approximately 4 miles southeast of Kellogg, Idaho, consisting of 10 acres of surface rights and 15 acres of patented claims with mineral rights over 64 patented claims. Between 1917 and 1981, Crescent produced over 25 million ounces of silver at average grades of 26 ounces per ton (891 grams per tonne), demonstrating the deposit's historical productivity and grade quality.

The property hosts a historical Measured and Indicated mineral resource of 3.8 million ounces of silver contained in 201,000 tons grading 19.1 ounces per ton silver and 0.41% copper. An additional Inferred resource contains 19.1 million ounces of silver in 985,000 tons grading 19.4 ounces per ton silver and 0.43% copper. These historical estimates, prepared in August 2015 by Tetra Tech Inc., assume a silver price of US$20.00 per ounce, significantly below current market levels, and underground mining costs of US$145 per ton.

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

"The Crescent Mine is a synergistic addition to our Idaho operations located just 9 miles from the Galena Complex. Crescent is a fully permitted past producing mine which we intend to restart to provide a supplementary high-grade source of feed for our Galena Complex mills. Crescent mineralized material is very similar to the tetrahedrite material at Galena which contains high grade Silver and significant by-product potential from antimony and copper, which meshes perfectly with our strategy to maximize the value of our production across metals."

Critically, Crescent's mineralization consists of tetrahedrite, identical to the silver-copper-antimony material currently processed at Galena. This mineralogical similarity enables immediate processing synergies through existing Galena and Coeur mills, which possess combined capacity of 1,250 tons per day. The 2015 Preliminary Economic Assessment envisioned a 250-ton-per-day operation with total production of approximately 15 million ounces of silver over an 11-year mine life.

Strategic Significance

The Crescent acquisition delivers immediate operational synergies that distinguish it from typical mining consolidation transactions. Located just 9 miles from Galena by road, Crescent enables Americas to leverage existing infrastructure including processing facilities, underground development expertise, vendor contracts, and technical capabilities across both properties. The Galena mill currently operates at approximately 750 tons per day capacity, while the nearby Coeur mill adds another 500 tons per day, providing 1,250 tons per day of total processing capacity against current Galena production of approximately 408 tons per day.

Beyond immediate operational benefits, Crescent offers substantial exploration upside on largely unexplored ground. Less than 5% of the property's landholdings have been explored, with only two veins, the South Vein and Alhambra Vein, targeted for historical production. The property contains over 12,000 feet of existing underground development including three adits, a decline, and portal infrastructure. On-site facilities include offices, warehouses, and a 2,000 kVA substation. These existing assets significantly reduce restart capital requirements compared to greenfield mine development.

The transaction capitalizes on Americas' management team's track record of operational turnarounds and value creation. Chairman and CEO Paul Andre Huet previously led Karora Resources through an 804% stock price increase versus the GDXJ gold junior index following its merger with Westgold Resources. Chief Operating Officer Mike Doolin increased Karora's throughput from 340,000 tons per annum to 1.6 million tons per annum while serving as Senior Vice President of Technical Services.

Silver Market Tailwinds

Global silver markets display structural characteristics that support sustained higher price levels through 2026 and beyond, according to market analysis from Sprott Asset Management and other institutional research. Physical supply dislocations continue to plague the market in 2025, driven by shrinking mine output and robust investment demand. Movement of metal between exchanges, from London to New York for example, reflects logistical and tariff-driven positioning rather than genuine supply expansion.

Silver mine supply has remained inadequate relative to rising demand for several years, resulting in persistent global deficits and declining production trends. Visible inventories across major global exchanges have dropped, contributing to narrow supply buffers for immediate delivery. ETF growth and inventory reductions have further depleted available metal, intensifying physical squeezes. The relatively small size of the silver market, approximately 1 billion ounces of total annual supply (mine production plus recycling), means modest investment flows can meaningfully move prices.

Industrial demand provides fundamental support beyond investment flows. Electronic applications, solar panel manufacturing, electric vehicle components, and AI data center infrastructure continue structurally increasing silver consumption. Solar panel production alone has become a major demand driver, with photovoltaic applications consuming over 100 million ounces annually. Lower interest rate expectations and potential liquidity support from central banks have tilted investor preferences toward precious metals, while weakness in alternative asset classes has pushed capital into silver and gold.

Operational Excellence at Galena

Americas achieved significant operational milestones at the Galena Complex through 2025, demonstrating the management team's ability to optimize legacy mining operations. Phase 1 upgrades to the No. 3 hoisting shaft completed in September 2025, doubling skipping capacity from approximately 40 tons per hour to 80 tons per hour. The company upgraded the hoist motor from 1,750 horsepower to 2,250 horsepower, added a spare 2,250 horsepower motor for operational redundancy, and installed a new load weight measuring system to optimize skip capacity and hoisting efficiencies.

The successful introduction of long hole stoping represents another operational breakthrough, with the first 3-foot-wide stope successfully blasted in the second quarter of 2025, the first such blast at Galena in many years. Long hole stoping enables potential rapid scale-up of ore production while leveraging existing infrastructure and planned paste fill plant development. Compared to underhand cut-and-fill methods previously employed, long hole stoping delivers approximately 60% lower cost per ton at similar dilution levels.

Exploration success continued with two significant high-grade vein discoveries announced in 2025. Drilling from the 5200 Level defined a new silver-copper vein (034 Vein) with results including 3.44 meters at 983 grams per tonne silver and 0.74% copper. A second discovery (149 Vein) intersected 0.21 meters at 24,913 grams per tonne silver and 16.9% copper, located adjacent to existing infrastructure at the 4300 Level.

Antimony: The Critical Mineral Advantage

Americas operates the United States' largest active antimony-producing mine at Galena, delivering approximately 450,000 pounds of antimony as a by-product through the first three quarters of 2025. This production occurs at a time when antimony has gained strategic importance as a critical mineral essential for military applications, flame retardants, and battery technologies. Galena's tetrahedrite ore naturally contains approximately 1% antimony in an average antimony-to-copper ratio of 0.7.

Breakthrough metallurgical testwork completed in May and September 2025 demonstrated that modern processes can upgrade antimony concentrates and create marketable products from Galena's copper concentrate. Phase 1 flotation testing achieved 90% to 96% antimony recovery from ore grading approximately 1% antimony, producing a rougher concentrate grading 18.6% antimony. Phase 2 testing demonstrated 99.8% antimony extraction from that copper concentrate through a secondary flotation process.

At current antimony prices of approximately US$50,000 per tonne, the 450,000 pounds (204 metric tonnes) produced year-to-date represents approximately US$10 million in potential revenue that has not been captured due to low concentrate quality in the past. The successful testwork opens two strategic paths: shorter-term, antimony becomes a payable by-product under the company's new offtake agreement with Ocean Partners and Teck Resources; longer-term, evaluation of potential domestic refining options could yield substantially higher revenue from antimony by-product production.

Financial Positioning & Valuation

Americas completed a heavily oversubscribed US$132 million bought deal financing in October 2024, providing the capital necessary to advance both the Crescent acquisition and ongoing Galena optimization without near-term dilution pressure. The financing added several new large institutional shareholders to the register, complementing existing institutional ownership exceeding 70% when combined with insider holdings. This shareholder base includes prominent resource-focused investors such as Sprott Asset Management, Merk Investments, Newgen Asset Management, BlackRock, and Manulife.

The company's valuation relative to silver-producing peers appears attractive based on multiple metrics. Americas trades at 0.76 times net asset value per share compared to an average of 0.88 times for intermediate to senior silver producers. Despite generating 87% of 2025 revenue from silver, the second-highest exposure globally, the company maintains a market capitalization of approximately US$1.1 billion, smaller than several peers with lower silver revenue exposure. The combination of high-grade assets, growing production profile, critical mineral by-product exposure, and strong shareholder base creates what several analysts characterize as an asymmetric risk-reward opportunity.

The Investment Thesis for Americas Gold and Silver

• Prioritize high-grade primary silver producers if structural deficits persist into 2026, as supply constraints disproportionately benefit concentrated exposure.
• Consider critical mineral by-product exposure as a value multiplier when antimony trades above US$40,000 per tonne, adding 10 to 15% revenue upside to base case economics.
• Evaluate operational synergies in regional consolidation transactions, particularly when existing mill capacity exceeds current throughput by 2 to 3 times, enabling low-capital production growth.
• Monitor institutional ownership concentration above 70% as an indicator of long-term holder base less susceptible to volatility-driven selling pressure.
• Assess management track record on similar asset transformations, weighting proven operational improvements over promotional development narratives when evaluating junior to intermediate producers.

The Crescent Mine acquisition positions Americas Gold and Silver to capitalize on silver market dislocations with high-grade North American production assets at a time when physical supply tightness supports structurally higher prices. The transaction's strategic logic, immediate operational synergies, existing infrastructure, identical mineralization to Galena, and substantial exploration upside, distinguishes it from typical mining sector consolidation. Combined with breakthrough antimony recovery metallurgy, strong institutional backing including billionaire investor Eric Sprott, and US$132 million in fresh financing, the company possesses the assets, technology, capital, and management team to execute its Idaho expansion strategy. For investors seeking leveraged exposure to silver prices through primary producers with critical mineral by-product optionality, Americas offers a compelling risk-reward profile supported by operational momentum, favorable market fundamentals, and attractive relative valuation versus peers.

TL;DR

Americas Gold and Silver closed acquisition of Idaho's Crescent Mine for US$65M, adding 22.9M oz historical silver resources located 9 miles from its Galena Complex. The deal provides 1.4 to 1.6M oz annual silver production potential using existing mill capacity, creating immediate synergies. With 87% revenue from silver (2nd highest globally), recent US$132M financing, and breakthrough 99% antimony recovery metallurgy, the company offers concentrated silver exposure plus critical mineral upside. Backed by Eric Sprott (14% holder) and 70% institutional ownership, Americas trades at 0.76x NAV versus 0.88x peer average despite structural silver market deficits supporting higher prices through 2026.

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