ALN Abogados advised Samsung C&T on the structuring and negotiation of a Prepaid Offtake Financing Facility, a financial mechanism through which Samsung finances the purchase of mineral concentrates in advance.
The transaction, valued at US$7 million, will allow Silver Storm Mining Ltd. to rehabilitate and develop its La Parrilla mine, including upgrading equipment and operations. In turn, this transaction guarantees Samsung the exclusive purchase of 100% of the lead, silver, and zinc concentrates produced over a two-year period.
The financing includes monthly payments starting in May 2026, which will be linked to the sale of concentrates. 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, with no extra costs such as search fees, shares or warrants provided to third parties.
The signed agreement supports the exclusivity of the concentrate supply and reinforces trust between the parties, thus strengthening Samsung C&T’s position as a strategic partner in the commodities sector.
ALN Abogados provides sound legal structuring, ensuring comprehensive protection of its client’s interests and consolidating a solid strategic alliance between Silver Storm and Samsung C&T. This agreement represents a significant step toward growth and expansion, facilitating the financial fluidity necessary for the sustainable development of the mining project.
Legal Advisors
Advisors of Samsung C&T:
- ALN Abogados: Partners Joel Gonzalez and Javier Andujo. Associate David Almeida.
