We are pleased to announce that ALN Mining Law Firm acted as key legal advisor in the strategic transaction whereby Silverco Mining Ltd. (TSXV: SICO, “Silverco”) entered into a binding letter dated January 19, 2026, to acquire Nuevo Silver Inc. (“Nuevo Silver”), including its recent acquisition of 100% of the producing La Negra Silver Mine in Querétaro, Mexico (the “La Negra Mine”).
This transformational transaction is structured as a three-cornered amalgamation, pursuant to which Nuevo Silver will amalgamate with a wholly-owned subsidiary of Silverco. Existing shareholders of Nuevo Silver will receive a total of 16,802,316 Silverco common shares in exchange for their Nuevo Silver shares. Upon closing, former Nuevo Silver shareholders will hold approximately 34% of Silverco shares, while current shareholders will hold 66%. Silverco will also assume approximately US$11 million in debt associated with the La Negra Mine, US$12.5 million in milestone payments due in Q1 2027, and US$5 million in potential contingent payments between Q1 2027 and Q1 2028.
Key benefits for Silverco:
- Immediate production and cash flow, with ~US$8 million in cash.
- Diversification of its asset base and addition of an established operating team in Mexico.
- The La Negra Mine currently operates at 55% capacity, providing a solid foundation for expansion.
ALN Mining Law Firm provided comprehensive legal support, covering thorough due diligence, deal structuring, regulatory strategy (including compliance with MI 61-101 for related party transactions), negotiation of the binding letter, and full documentation. We collaborated closely to meet standard closing conditions, such as regulatory approvals from the TSX Venture Exchange, a favorable fairness opinion, and Silverco board approval.
Closing is subject to standard conditions and is expected as soon as practicable after their satisfaction.
At ALN Mining Law Firm, we reaffirm our commitment to complex mining sector transactions, positioning our clients for sustainable success.
