On September 8, 2026, Silver Bow Mining Corp. (NYSE American: SBMT) announced that it has completed the initial closing of its acquisition of the Jefferson County Metallurgical Complex. The transaction was approved by the U.S. Bankruptcy Court for the District of Montana on September 4, 2026, which entered an order authorizing the sale of specified assets from Montana Tunnels Mining, Inc. to Silver Bow Mining and its wholly owned subsidiary, Silver Bow Tunnels Corp., under Sections 105(a) and 363 of the U.S. Bankruptcy Code.
As part of the initial closing, Silver Bow Mining funded approximately $28.58 million into an escrow account to satisfy creditor obligations. This includes approximately $4.27 million owed to Jefferson County, Montana, and approximately $20.78 million owed to the Montana Department of Environmental Quality. The company has delivered instructions to the escrow agent to release these funds to satisfy the specified obligations over the coming days.
In exchange for directing the release of funds from escrow, Montana Goldfields, Inc. issued Silver Bow Mining a senior secured note. This note is guaranteed by Montana Tunnels Mining, Inc. and is secured against real property interests, fixtures, and tangible personal property at the Complex. It is important to note that the initial closing does not transfer ownership of the Complex to Silver Bow Mining; the company expects to acquire ownership at the final closing, subject to the satisfaction of customary closing conditions, including shareholder approval for the issuance of common shares underlying contingent value rights and approval from the NYSE American stock exchange.
