Silver Bow Mining Corp. (NYSE American: SBMT) announced on September 22, 2026, the signing of a non-binding term sheet with Ocean Partners UK Limited for a potential integrated funding and credit support package valued at approximately US$88 million. The agreement targets the Company's Rainbow Block Project and the Jefferson County Metallurgical Complex, which includes the Montana Tunnels Mine.
The proposed package includes a US$40 million concentrate prepayment facility structured in three tranches. The first tranche of US$10 million is available after satisfaction of conditions precedent, with a US$5 million pre-closing bridge note to be funded within five business days of signing. The second tranche of US$20 million will be available upon a board resolution approving a restart or refurbishment program. The final tranche of US$10 million is available at the Company's option after three consecutive months of concentrate deliveries. The facility carries an interest rate of 12-month SOFR plus 6.75% per annum, with repayment to be set-off against concentrate deliveries.
Additionally, Ocean Partners would provide guarantees supporting replacement surety bonds of up to US$43.1 million. If accepted by the Montana Department of Environmental Quality, these guarantees would release approximately US$40.9 million of cash currently posted as reclamation bond collateral for the Complex and approximately US$1.1 million of cash collateral for the Rainbow Block.
The term sheet also outlines ten-year offtake agreements for zinc and lead concentrates. Ocean Partners would purchase 100% of concentrates from the Rainbow Block and from ores outside the M-Pit at Montana Tunnels, as well as one-third of concentrates from the M-Pit at Montana Tunnels. The contracts are benchmark-linked with no minimum tonnages or take-or-pay obligations. The Company retains priced rights to terminate the contracts at any time before or after production.
Furthermore, Ocean Partners committed to a US$5 million lead investment in a future equity financing, acting as lead investor on the same terms as other investors. The Company is targeting the final closing of its acquisition of the Complex in the fourth quarter of 2026, subject to customary conditions and shareholder approval.
