Nord Precious Metals Evaluates "Title to the Metal" Financing Structure for Silver Production

Core Concept - Nord Precious Metals is evaluating a non-dilutive financing framework based on redeemable preferred shares to fund silver production at its Castle Silver Mine project, providing investors with direct claims on silver at production cost, secured by mine resources [1][3][14] Financing Structure - The proposed structure includes two classes of redeemable preferred shares: Class A for external investors and Class B for existing common shareholders, each representing a fixed quantity of silver deliverable upon production [2][4] - Class A shares will be priced based on Nord's estimated cost of silver production, allowing redemption for either physical silver or cash at the New York spot price [4][5] - Class B shares will allow existing common shareholders to convert their shares into preferred shares during a defined window prior to redemption, calculated using a specific formula [5][6] Security and Production Allocation - The financing will be secured by the 100%-owned Castle Silver Mine resource, providing dedicated single-asset security for investors [8] - A defined portion of Castle's silver production will be allocated to preferred share obligations, ensuring that the majority of production and revenue benefits common shareholders [9][10] Production Targets and Evergreen Structure - The redemption option for physical silver will be triggered by meeting specific production thresholds based on the finalized mine plan [11] - An "evergreen" provision may be included to allow for the extension of the program for subsequent production cycles, subject to regulatory approval [12] Regulatory Path and Next Steps - Implementation of the proposed financing structure requires board and shareholder approval, regulatory acceptance, and completion of definitive documentation [13][15] Company Overview - Nord Precious Metals operates a high-grade milling facility in Ontario and has a strategic position in silver discovery and recovery operations, with significant resources at the Castle property [17][18] - The company also maintains a portfolio of battery metals properties, enhancing its market position in both precious metals and critical minerals [19]