Vancouver, British Columbia — January 20, 2026 — Leads & Copy —
Silverco Mining Ltd. (TSXV: SICO) has entered into a binding letter agreement dated January 19, 2026, to acquire Nuevo Silver Inc., according to a recent announcement by the company.
The acquisition, structured as a three-cornered amalgamation, will involve Nuevo Silver merging with a subsidiary of Silverco. Silverco will issue common shares to Nuevo Silver shareholders in exchange for their shares. This transaction is referred to as the “Acquisition.”
Silverco is acquiring Nuevo Silver, which recently entered into a Share Purchase Agreement with a party arm’s length to Silverco and Nuevo Silver, to acquire 100% of the producing La Negra Silver Mine in Querétaro Mexico.
Silverco anticipates several benefits from the Acquisition:
- Immediate production and cash flow
- Approximately US$8 million in cash
- A more diverse asset base
- An established operating team in Mexico
Mark Ayranto, CEO of Silverco, stated that the acquisition of Nuevo Silver and the La Negra Mine represents a significant transformation for Silverco, transitioning it from a developer to a cash-flowing producer. He added that La Negra is currently operating at about 55% capacity, providing a strong base for cash flow, with plans to increase throughput during 2026. Ayranto also noted that this acquisition, combined with the Cusi Property, which is expected to resume operations in the second half of 2026, supports the company’s goal of becoming a 10 million ounce AgEq producer within three years.
Under the terms of the agreement, Nuevo Silver shareholders will receive 16,802,316 Silverco Shares. Upon completion of the Acquisition, former Nuevo Silver shareholders will hold approximately 34% of the outstanding Silverco Shares, while existing Silverco shareholders will hold approximately 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 contingent payments potentially due between Q1 2027 and Q1 2028.
Silverco and Nuevo Silver will negotiate a definitive agreement, with the terms of the Binding Letter governing the transaction if a Definitive Agreement is not executed.
The Acquisition’s closing is contingent upon customary conditions, including regulatory and third-party approvals, completion of Nuevo Silver’s acquisition of the La Negra Mine, a technical report on the La Negra Mine (if required), a favourable fairness opinion for the Silverco board, and Silverco board approval.
The closing will occur after all conditions are met or waived.
Because insiders of Silverco will acquire Nuevo Silver Shares through Nuevo Silver’s acquisition of the La Negra Mine, the Acquisition is classified as a “related party transaction” under Multilateral Instrument 61-101. Silverco is relying on exemptions from formal valuation and minority shareholder approval requirements under Sections 5.5(b) and 5.7(1)(a) of MI 61-101.
Canaccord Genuity Corp. is serving as financial advisor to Silverco, with DLA Piper as legal counsel. Cassels Brock & Blackwell LLP is legal counsel to Nuevo Silver.
Nico Harvey, VP Project Development of Silverco, has reviewed and approved the scientific and technical information in the release. He is a qualified person as defined by National Instrument 43-101.
Silverco Mining Ltd. holds a 100% interest in the Cusi Project in Chihuahua State, Mexico. The project features a 1,200 ton per day mill and lies within the Sierra Madre Occidental gold-silver belt.
The Cusi Property is a past-producing underground silver-lead-zinc-gold project with excellent infrastructure and access to the national power grid.
Mark Ayranto, President & CEO
Email: mayranto@silvercomining.com
Investor Relations & Communications
Email: info@silvercomining.com
Source: Silverco Mining Ltd.
