Americas Gold & Silver Settles Fixed Gold Delivery Obligation with Royal Gold Affiliate

Americas Gold & Silver Corporation has agreed with International Royalty Corporation (IRC), an affiliate of Royal Gold, Inc., to settle the company's remaining obligation to deliver 8,861 ounces of gold under the Precious Metals Delivery and Purchase Agreement originally dated April 3, 2019. Under the terms of the settlement, Americas will deliver 5,000 ounces of gold immediately to IRC and issue 2,652,532 common shares at a deemed price of US$5.86 per share, with the physical delivery funded by the approximately US$7 million proceeds from unwinding in-the-money gold price protection instruments and cash on hand. The settlement removes over US$40 million in variable gold-linked debt and, combined with the termination of the Sprott silver delivery obligation announced on May 22, 2026, eliminates over US$85 million in total variable legacy liabilities, with management expecting a materially positive impact on silver price leverage and future cash flow available for reinvestment in operations.

Company Overview

Americas Gold & Silver Corporation (TSX: USA | NYSE American: USAS) is a North American precious metals and antimony producer operating high-grade mines in the US and Mexico. Its flagship Galena Complex in Idaho is the nation's largest antimony mine and its primary silver asset, complemented by the recently acquired Crescent Silver Mine nine miles away, which hosts the world's third highest-grade silver resource.  In February 2026, Americas formed a 51/49 joint venture with US Antimony to build a new antimony processing hub at Galena, creating a US mine-to-finished product antimony solution. In Mexico, the company owns and operates the Cosalá Operations in Sinaloa. Americas is fully funded to grow production across its asset base. 

The Precious Metals Delivery Agreement

The obligation now being settled originated under the Precious Metals Delivery and Purchase Agreement dated April 3, 2019, which Americas entered into with Sandstorm Gold Ltd. as part of the Relief Canyon Transaction. Following Sandstorm Gold Ltd.'s acquisition by International Royalty Corporation (IRC) in October 2025, the counterparty to the agreement became IRC, an affiliate of Royal Gold, Inc.

Under the original terms, Americas was obligated to deliver a total of 8,861 ounces of gold to IRC over the period between June 2026 and December 2027. The company has now reached a separate agreement with IRC to extinguish this entire remaining obligation ahead of the delivery schedule.

Settlement Terms

Under the Agreement, Americas will satisfy its 8,861-ounce gold delivery obligation by delivering 5,000 ounces of gold immediately to IRC and issuing 2,652,532 common shares of the company to IRC at a deemed price of US$5.86 per share.

The 5,000-ounce physical delivery is being funded using the proceeds from unwinding gold price protection instruments that Americas put in place in relation to this liability. Those instruments were in-the-money at the time of the settlement, generating proceeds of approximately US$7 million, with any shortfall covered by cash on hand.

Chairman and Chief Executive Officer of Americas Gold & Silver, Paul Andre Huet, highlighted the return generated by the hedging programme as a direct offset to the cash outlay:

"The settlement of the fixed gold delivery obligation under the Precious Metals Delivery Agreement with IRC removes over $40 million in variable future debt obligations which fluctuate with the price of gold. We are also pleased that our proactive gold price protection instruments entered in mid-2025 have yielded an approximate US$7 million return for shareholders, positively offsetting our cash outlay."

The share issuance to IRC is subject to TSX approval and will carry a 4-month hold period under applicable securities laws.

Strategic Significance: Balance Sheet Simplification

The transaction represents the second announced settlement of a legacy precious metals delivery obligation within the space of days. On May 22, 2026, Americas announced the termination of its silver delivery obligation to Sprott Inc. Together, the two settlements remove over US$85 million in variable future debt obligations, a liability class that fluctuates directly with precious metals spot prices and therefore introduces earnings volatility unrelated to the company's operational performance.

Huet framed the dual settlements as a deliberate and coordinated balance sheet strategy:

"Following on Americas announcement of the termination of the silver delivery obligation to Sprott Inc. (see Americas news release dated May 22, 2026), today's announcement marks yet another significant step in further strengthening our balance sheet and overall business."

By eliminating both the gold-linked and silver-linked delivery obligations, management states that shareholders will benefit from a cleaner, more direct relationship between silver price movements and the company's financial results. Huet addressed the aggregate impact and the implications for investor leverage to silver:

"By removing this gold price-linked obligation, as well as the previously announced agreement to terminate the Sprott Silver Deliver Agreement, we have now eliminated over US$85 million in variable future debt obligations at a very compelling equity valuation. We expect the removal of these legacy liabilities to have a significantly positive impact by further increasing silver price leverage for our shareholders and simplifying the silver price relationship to our bottom line. At current spot prices, this also represents another significant reduction of future cash debt service costs, allowing us to reinvest in operations for the benefit of our shareholders."

Next Steps

The immediate step remaining is the receipt of TSX approval for the issuance of 2,652,532 common shares to IRC at the deemed price of US$5.86 per share. Once approved, the shares will be subject to a 4-month hold period under applicable securities laws. The 5,000-ounce physical gold delivery is funded and is expected to be completed promptly.

With both the gold and silver legacy delivery obligations now addressed, Americas has indicated its focus shifts to deploying the freed cash flow towards production growth at its operating assets, with the stated objective of becoming a leading North American silver producer and a key source of US-produced antimony.

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