Americas Gold & Silver Expands Idaho Footprint at Critical Time

• Americas Gold & Silver acquires fully-permitted Crescent Mine for US$65M, adding historical resources of 3.8 Moz M&I and 19.1 Moz Inferred silver located nine miles from Galena Complex.
• Crescent's 440 tpd mill and existing infrastructure enable mid-2026 restart targeting 1.4-1.6 Moz annual silver output using Galena's upgraded processing capacity.
• Crescent contains identical silver-copper-antimony tetrahedrite mineralization as Galena, strengthening company's position as America's only primary antimony producer addressing critical supply vulnerabilities.
• US$65M concurrent bought-deal financing led by Canaccord and BMO attracts Eric Sprott participation, fully funding acquisition cash requirements and initial capital deployment.
• Less than 5% of Crescent's landholding explored with US$3.5M drill program commencing 2026 targeting untested vein extensions and 2,100-foot Alhambra vein strike length.

Silver's struggle to maintain gains above the psychologically important $50 per ounce level comes at a pivotal moment for Americas Gold & Silver, which announced a US$65 million acquisition of the Crescent Mine in Idaho's historic Coeur d'Alene mining district. The transaction adds 3.8 million ounces of Measured and Indicated silver resources and 19.1 million ounces Inferred, located just nine miles from the company's flagship Galena Complex, which already ranks as the world's third highest-grade silver mine at 480 grams per tonne.

The timing of the Crescent acquisition reflects management's confidence in silver's long-term fundamentals despite near-term technical uncertainty. Christopher Lewis of DailyForex identifies $51.50/oz as the critical breakout level for silver, with support at $50/oz representing a make-or-break zone for the current rally. For Americas Gold & Silver, the acquisition provides immediate production potential with historical output of 25 million ounces at average grades of 891 g/t between 1917 and 1981, alongside significant exploration upside from largely untested vein extensions.

Under Chairman and CEO Paul Huet, who previously delivered successful exits at Klondex and Karora Resources, Americas Gold & Silver has executed a comprehensive operational turnaround while consolidating 100% ownership of Galena from the previous 60% stake. The company now generates approximately 80% of revenue from silver while maintaining its unique position as America's sole primary antimony producer, a critical mineral for national security applications.

Company Overview

Americas Gold & Silver operates a portfolio of precious metals assets spanning Idaho, Nevada, and Mexico, with the Galena Complex serving as the operational and strategic cornerstone. The company completed a transformational recapitalization in 2024-2025, attracting Eric Sprott as its largest shareholder at approximately 20% ownership through a $15 million equity investment at a 14% premium to market. This institutional validation accompanied a broader capital structure overhaul that included a C$50 million bought-deal financing and a $100 million term loan arranged with strategic partners Teck Resources and Ocean Partners.

The Galena Complex in Idaho's Coeur d'Alene district represents one of the shallowest operating mines in the historic Silver Valley, with significant depth extension potential estimated at approximately twice current mining levels. Since 2001, Galena has produced over 20 million pounds of antimony alongside its silver output, with peak historical production reaching 5.2 million ounces of silver in 2002 at grades of 729 g/t. Recent operational upgrades have increased hoist capacity from 1,750 to 2,250 tonnes per day, with skip speeds rising from 690 feet per minute to 1,200 fpm and skip capacity expanding from 48 tonnes per hour to 118 t/h.

Complementing Galena, the company's Cosalá Operations in Sinaloa, Mexico, serve as a cash-flow engine with production guidance increasing from 1.1 million ounces silver equivalent in 2023 to an estimated 4.0 million ounces in 2025. The EC120 Mine at Cosalá operates at all-in sustaining costs of approximately $10.80 per ounce silver equivalent, providing operational leverage to higher silver prices while maintaining cost discipline during periods of price consolidation.

The Crescent Acquisition

The Crescent Mine encompasses a fully-permitted underground operation on 100% privately-owned land with existing infrastructure including a 440 tonnes per day New Jersey Mill, corporate offices, shops, warehouses, and permanent power installations. Historical mineral resources as of August 2015 include 201,000 tons grading 19.1 opt silver in Measured and Indicated categories, plus 985,000 tons at 19.4 opt in Inferred, representing 3.8 million and 19.1 million ounces respectively. The mineralized material is tetrahedrite containing silver-copper-antimony, identical to material currently processed at Galena's upgraded facilities.

Chairman and CEO Paul Andre Huet emphasized the strategic rationale in the company's November 13 announcement:

"The addition of the high-grade silver Crescent Mine to Americas portfolio, located just 9 miles by road from our producing Galena Complex, is a very compelling and synergistic acquisition opportunity that immediately capitalizes on the spare milling capacity at our Galena and Coeur mills."

Huet noted that Crescent has potential to be fast-tracked into the growing production profile alongside Galena, allowing the company to leverage its strong operations team located in the Silver Valley.

Based on a 2015 Preliminary Economic Assessment by Tetra Tech, Crescent has potential to add 1.4 to 1.6 million ounces annual silver production over an 11-year mine life at 250 tonnes per day throughput. Americas plans several positive adjustments to maximize production, leveraging its successful optimization approach at Galena including long-hole stoping methods that reduce costs by 60% versus traditional cut-and-fill techniques. The company expects to fast-track Crescent into production by mid-2026 using existing Galena and Coeur mill capacity, eliminating the need for standalone processing facilities.

Strategic Significance

Americas Gold & Silver's dual exposure to silver and antimony creates a unique investment profile among North American precious metals producers. The company generates approximately 80% of revenue from silver while maintaining exclusive positioning as America's sole primary antimony producer, addressing a critical national security vulnerability identified by the U.S. Geological Survey. With over 90% of U.S. antimony imports sourced from China, Russia, and Tajikistan, domestic production from Galena and now Crescent provides supply chain resilience for defense and industrial applications including flame retardants, ammunition, and battery technologies.

Huet outlined the company's approach to value creation through operational synergies:

"Adding near-term silver ounces that maximizes the use of existing assets is the type of accretive growth we prioritize as a management team, the potential for the addition of near-term cash flow while realizing material operational synergies."

The fully-permitted status and privately-owned land eliminate typical development hurdles, enabling a pathway to supplement Galena Mill feed as early as mid-2026 for substantial near-term cash flow generation.

The Crescent acquisition amplifies this strategic positioning by securing a high-grade asset in one of North America's most prolific silver districts, where consolidated land holdings enable long-term mine planning and infrastructure optimization. The Coeur d'Alene district has produced over 1.2 billion ounces of silver since the 1880s, with Crescent's historical production averaging 891 g/t silver over 64 years. By controlling assets within nine miles of each other, Americas Gold & Silver gains flexibility to optimize personnel deployment, equipment sharing, and processing capacity across multiple operations, potentially reducing operating costs through economies of scale.

Financing & Institutional Support

The US$65 million purchase price consists of $20 million cash and approximately 11.1 million common shares valued at $45 million based on a deemed price of $4.00 per share. A concurrent $65 million bought-deal equity financing led by Canaccord Genuity and BMO Capital Markets will fund the cash consideration and provide initial capital for development work. Eric Sprott has committed to participate in the financing alongside other large institutional investors, reinforcing his support for the transaction as Americas' largest shareholder.

Eric Sprott, who holds approximately 20% of Americas Gold & Silver, provided strong endorsement of the transaction and management's execution:

"I am very impressed and pleased to be the largest shareholder in Americas Gold and Silver, noting the significant progress Paul and his team have made in just 11 months at Galena. The addition of the Crescent Mine, while potentially improving the project profile of the Company, provides additional synergies only available through rational consolidation and is a transaction that leverages the strength of Paul's strong operating team in the Silver Valley."

Institutional investors have validated this strategic direction through significant capital commitments, with the concurrent $65 million financing attracting participation from Sprott alongside other large institutional holders including CI Financial, J.P. Morgan, Manulife, and BMO, which collectively control over 60% of outstanding shares. This institutional support provides financial stability and strategic patience for multi-year development programs, with Crescent's $3.5 million exploration budget for 2026 targeting untested vein extensions that could significantly expand resource estimates beyond the current 22.9 million ounces combined M&I and Inferred.

Current Market Context

Silver's recent price action reflects the technical consolidation described by Christopher Lewis, with resistance at $51.50/oz representing a critical threshold for sustained upward momentum. Lewis identifies the $50/oz level as key support, noting that a breakdown below this zone could trigger selling pressure toward $48/oz. For Americas Gold & Silver, these price dynamics create both opportunity and risk: higher silver prices improve cash flow and project economics, while price consolidation tests the company's operational efficiency and cost discipline.

Industrial demand fundamentals support long-term silver strength, with solar panel manufacturing alone consuming an estimated 232 million ounces annually as of 2024. Additional demand growth from electric vehicle components, medical applications, and data center infrastructure reinforces silver's dual role as both precious metal and industrial commodity. The 2015 Crescent PEA assumed $20/oz silver pricing, suggesting substantial economic upside at current price levels above $50/oz, though updated economic studies will be required to reflect current cost structures and metallurgical assumptions.

Americas Gold & Silver's valuation at 0.80× price-to-net asset value compares favorably to the peer average of 1.26×, suggesting potential for multiple expansion if operational execution continues and silver prices stabilize above $50/oz. The Crescent acquisition adds significant resource ounces at modest cost, with the transaction price implying approximately $2.84 per ounce for combined M&I and Inferred resources before accounting for infrastructure value. This compares favorably to recent peer transactions in the Coeur d'Alene district, where fragmented land holdings have historically commanded premium valuations.

Exploration & Production Potential

Crescent represents significant exploration upside beyond the 2015 resource estimate, with less than 5% of the property's landholding explored to date. Only two veins South and Alhambra have been targeted for production historically, while other known structures including Grey Copper and Jackson veins contain mineralization but remain largely untested. The Alhambra vein, which was a major producer at Crescent, has 2,100 feet of untested strike length on the western property boundary, representing immediate drill targets for resource expansion.

Huet expressed particular enthusiasm for the exploration opportunity:

"I am also extremely encouraged by the strong exploration upside at Crescent. Significant parts of the mine have yet to be drilled and we expect to target these with a US$3.5 million drill program commencing in 2026. While the near-term development at Crescent is potentially accretive to our silver and antimony resources, we are excited to test these areas to evaluate the strong potential for mine-life extension."

The property hosts the Cate and Sullivan faults, which control large mineral deposits at the adjoining Bunker Hill mine, but these structures remain untested at Crescent despite being mapped crossing the property. Americas plans an aggressive five-year drill program commencing in 2026 with initial budget of $3.5 million, testing multiple targets from both surface and underground platforms. This systematic approach mirrors the company's successful exploration at Galena, which has added approximately 6.95 million ounces of new silver resources between 2019 and 2024 through disciplined drilling of vein extensions.

The Investment Thesis for Americas Gold & Silver

• Acquire exposure to America's only primary antimony producer expanding output through Crescent's tetrahedrite mineralization as supply chain concerns drive domestic sourcing initiatives.
• Target silver producers adding high-grade resources below $3/oz as Crescent transaction demonstrates value-accretive consolidation opportunities in established mining districts.
• Monitor mid-2026 Crescent restart timeline as indicator of management's ability to fast-track development and generate near-term cash flow from existing infrastructure.
• Evaluate exploration results from $3.5M drill program targeting 2,100-foot Alhambra vein extension and untested fault structures for potential resource expansion beyond 22.9M oz.
• Consider scaling positions if silver establishes support above $50/oz given Crescent economics based on $20/oz assumption suggest substantial margin expansion at current prices.
• Track institutional ownership following concurrent financing as Sprott participation and 60%+ institutional base provides strategic stability for multi-year development programs.

Americas Gold & Silver's acquisition of the Crescent Mine represents a transformational consolidation that leverages existing infrastructure, technical expertise, and institutional backing to pursue high-grade production in a proven mining district. The US$65 million transaction adds 22.9 million ounces of combined Measured, Indicated, and Inferred silver resources at implied cost of approximately $2.84 per ounce, with immediate production potential targeting 1.4 to 1.6 million ounces annually by mid-2026. For investors seeking exposure to silver's industrial demand growth and antimony's strategic importance, the company offers differentiated leverage through operational optimization and resource expansion.

The concurrent $65 million equity financing fully funds acquisition cash requirements and initial capital deployment, eliminating near-term financing risk while maintaining balance sheet flexibility following the $100 million term loan completed in June 2025. Eric Sprott's participation in the financing alongside other large institutional investors reinforces confidence in management's execution capability under Chairman and CEO Paul Huet, whose track record includes successful exits at Klondex and Karora Resources. With institutional ownership exceeding 60%, the company has secured strategic alignment necessary to fund multi-year development and exploration programs.

As silver tests critical technical levels identified by DailyForex's Christopher Lewis, Americas Gold & Silver provides investors with leveraged exposure to potential upside breakouts above $51.50/oz while maintaining antimony revenue as a strategic hedge against precious metals price weakness. The Crescent acquisition enhances this positioning by adding immediate production potential and long-term resource expansion opportunities, positioning the company to capitalize on silver's evolving role in energy transition and national security supply chains while consolidating its leadership as America's primary antimony producer.

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