Americas Gold and Silver Settles 8,861-Ounce Gold Delivery With 2.65M Shares at $5.86
USAS•Americas Gold and Silver will settle its remaining 8,861-ounce gold delivery obligation by delivering 5,000 ounces immediately and issuing 2,652,532 common shares at a deemed price of US$5.86 per share. The transaction removes over US$40 million in future debt obligations and taps US$7 million from gold price protection instruments.
1. Agreement Details
Americas Gold and Silver reached an agreement with International Royalty Corporation to settle its remaining obligation to deliver 8,861 ounces of gold under a 2019 Precious Metals Delivery Agreement. Under the terms, the company will deliver 5,000 ounces of gold immediately and issue 2,652,532 common shares at a deemed price of US$5.86 per share, subject to TSX approval and a four-month hold period.
2. Financial Impact
The settlement eliminates over US$40 million in variable future debt obligations tied to gold deliveries and leverages approximately US$7 million from the unwinding of in-the-money gold price protection instruments, funded by those proceeds and cash on hand.
3. Strategic Implications
Combined with the recent termination of a silver delivery obligation, the company has removed over US$85 million in variable liabilities, strengthening its balance sheet, increasing silver price leverage for shareholders, simplifying commodity exposure, and reducing future cash debt service costs to fund operational growth.
