Silver Bullet Mines Corp. (TSX-V:SBMI, OTC:SBMCF) (SBMI) said it has received its first order for silver products from a third party, bringing in approximately US$400,000 in revenue per month.
The purchaser has ordered 500 kg (17,600 ounces) of silver and intends to order the same amount each month in the future. The order was announced in detail on April 17, 2023, and the purchaser provided a US$225,000 cash advance to SBMI to fund the cost of processing the mineralized material from the Buckeye Mine without dilution to shareholders.
The company said the purchaser analyzed a silver dore bar previously sent by SBMI and confirmed that there are no material impurities in the bar. If the bar is representative of the silver to be delivered, SBMI will not incur a significant discount to spot prices, and there will be no reduction in the amount payable due to deleterious metals.
The company noted that there are approximately 2,500 tons of mineralized material on the surface at the Buckeye Mine site, and mining is ongoing. SBMI is drifting along the vein to an area believed to contain higher-grade mineralization. At the current rate of mining, that zone should be intercepted in approximately 4 weeks, although the timing may vary subject to the usual risks attendant on mining, it said.
SBMI said it anticipates starting to process the current order this week by processing the material on hand at the mill/mine site, which has earlier returned high grades and its management believe that the mill is operating at optimum efficiency.
The company also stated that the debenture, referred to in the company's April 17 press release, would bear interest at the rate of 2% per month on the outstanding principal for one month. If the conversion feature of the debenture is triggered, the conversion price would be $0.22 per share.
SBMI is a mining company that explores and develops mineral properties, primarily silver and gold. The company aims to develop and operate profitable mines while minimizing environmental impacts.
Contact the author at jon.hopkins@proactiveinvestors.com