Silver Bullet Mines Corp (SBMI) announced that it has entered into an agreement whereby a purchaser of its silver products would advance the company $225,000 against the first delivery of silver.
The resource junior said the advance would be secured by a conditional convertible debenture, which would only become convertible in the event SBMI does not deliver US$225,000 of silver to the purchaser within 60 days of SBMI receiving the $225,000 advance.
SBMI noted the principal amount of the debenture would decrease as SBMI delivers silver to the purchaser, while accruing interest at the rate of 3% per month on the outstanding principal for one month, which interest begins to accrue after 30 days.
It added that after 60 days either the interest converts with the debenture, or if SBMI has delivered $225,000 worth of silver to the purchaser the obligation to pay interest would expire.
SBMI previously announced an order for 50 kilograms (kg) of silver from the purchaser, which has since been increased to 500 kg (17,600 ounces) of silver.
The purchaser has indicated a willingness to purchase 17,600 ounces of silver from SBMI every month for the foreseeable future and SBMI management reasonably believes it has the capability to fill such monthly orders, according to the company.
Furthermore, SBMI stated the funds would be advanced by the purchaser immediately after SBMI receives regulatory approval for the debenture, and would be used for working capital purposes.
Silver Bullet Mines has projects in the western US. The company’s flagship Black Diamond project is in Gila County, Arizona in the Miami-Globe copper camp and is centered on the Richmond Basin. The property covers nearly 5,000 acres and is host to several past-producing underground primary silver mines.
Contact Sean at sean@proactiveinvestors.com