Silver Bullet Mines Signs Agreement to Direct Ship Material from Major Offtake Client

Core Viewpoint - Silver Bullet Mines Corp. has signed a one-year agreement for direct shipping material from the KT Gold Mine and SC Silver Mine, indicating a strategic move to enhance revenue and operational efficiency [1][7]. Group 1: Agreement Details - The agreement is set for one year starting December 16, 2025, with options for annual renewals [1]. - The client is a significant industry player, and the company perceives minimal counterparty risk [1]. - The initial tonnage for direct shipping is up to 12,000 tons for calendar 2026, with potential for larger purchases [3]. Group 2: Operational Impact - The material will be crushed to ¼ inch at the mine sites and shipped without processing through the SBMI mill [3][2]. - The company is evaluating cost-effective methods for crushing and loading the material, with shipping expected to start in Q1 2026 [4]. - Necessary equipment for processing has begun acquisition and is anticipated to be readily available [4]. Group 3: Financial Aspects - The company will receive a provisional payment of 80% of the estimated shipment value within five days of documentation receipt, with the final balance paid after determining weights and assays [5]. - Payments will be based on the mean of daily US$ LMBA quotations for gold and silver at the processing date [5]. Group 4: Strategic Growth - The agreement is seen as a significant revenue generator, leveraging the potential of the KT and SC Mines [7]. - The increase in precious metal prices allows the company to recover lower-grade materials that were previously unsellable [7]. - The company plans to focus on higher-grade material from underground at KT while increasing daily volumes and expanding mill throughput [7]. Group 5: Additional Announcements - The company has processed approximately 11,500 lbs of concentrate in its fourth batch, ready for pickup [8]. - It has incurred interest expenses of $62,082 related to convertible debentures, to be paid through the issuance of common shares [8].