At ALN abogados, we successfully advised Samsung C&T in structuring and negotiating a Prepaid Offtake Financing Facility, a mechanism through which Samsung finances in advance the purchase of mineral concentrates.
The operation, with a total amount of US$7 million, will allow Silver Storm Mining Ltd. to rehabilitate and develop its La Parrilla mine, including the improvement of equipment and operations. In turn, this transaction guarantees Samsung the exclusive purchase of 100% of the lead, silver, and zinc concentrates produced during a two-year period.
The financing includes monthly payments starting in May 2026, which will be linked to concentrate sales. Likewise, the interest rate will be variable, calculated based on the Secured Overnight Financing Rate (SOFR) plus an additional margin.
It is worth noting that the agreement includes an initial fee corresponding to an establishment commission of 1.25% on the disbursed amount, without extra costs such as search fees, shares, or warrants granted to third parties.
The signed commitment supports the exclusivity of concentrate supply and reinforces trust between the parties, thus strengthening Samsung C&T’s position as a strategic partner in the commodities sector.
At ALN abogados, we provide proper legal structuring, ensuring comprehensive protection of our client’s interests and consolidating a strong strategic alliance between Silver Storm and Samsung C&T. This agreement reflects a significant step towards growth and expansion, facilitating the financial fluidity necessary for the sustainable development of the mining project.
