Producer's New Offtake Deal is Key Milestone

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Silver X Mining Corp. (AGX:TSX.V; AGXPF:OTC) secured a US$2 million (US$2M) prepayment facility and offtake agreement with Trafigura Group Pte. Ltd. for copper from the miner's Nueva Recuperada project in Peru, noted a news release. Trafigura is a Singapore-based supplier of commodities.

"For our investors, this agreement not only strengthens our balance sheet through access to flexible capital but also supports the acceleration of development at our project, particularly on mine development and the construction of a third flotation circuit," Chief Executive Officer (CEO) José M. Garcia said in the release. "We continue to work on financing our imminent growth, focusing on nondilutive funding."

Silver X will sell 100% of Nueva Recuperada's copper concentrate to Trafigura from the time it begins copper production to the end of April 2029.

The US$2M facility will be drawn in tranches and will accrue interest at the secured overnight financing rate plus 6%. The expected repayment term is 20 months from the initial drawdown date.

As part of the financing terms, Silver X will issue 2.5 million (2.5M) warrants, exercisable for a period of up to 25 months at a price that is a 25% premium to the 20-day volume-weighted average on the TSX Venture Exchange on the agreement signing date.

"This transaction reflects Trafigura's confidence in our ability to deliver as a reliable and scalable producer," said Garcia.

The new expanded agreement builds on the existing offtake arrangement for Nueva Recuperada and reflects the continued partnership between the two companies.

Proceeds will be used for the implementation of a third flotation circuit at the Recuperada plant to produce copper concentrates with silver and gold contents, as well as for mine development and working capital.

Growth Story in Peru

Silver X is a British Columbia-based silver producer-developer working to deliver exceptional value to all of its stakeholders, according to its June 2025 Corporate Presentation. The company aims to achieve this by consolidating and developing undervalued assets, by adding resources and by increasing production, in an environment friendly and sustainable way.

Nueva Recuperada, Silver X's 100%-owned cornerstone asset, now comprises four projects and 230 mining concessions, on 20,472 fully permitted hectares in Central Peru's Huachocolpa mining district. Peru has the largest silver reserve of any country, according to the U.S. Geological Survey. The Silver Institute's World Silver Survey 2024 indicated the country is responsible for 13% of global silver production.

Technical Analyst Clive Maund wrote to Streetwise Reports exclusively that recent action involving Silver X stock is "very bullish." 

Nueva Recuperada surrounds Endeavour Silver's Minera Kolpa project, up to US$175M in value, Silver X noted. Endeavour acquired Kolpa for US$2.92 per Measured and Indicated (M&I) silver equivalent ounce, and Silver X is valued at US$0.81 per M&I silver equivalent ounce.

The overall Nueva Recuperada resource is 4,260,000 metric tons with grades of 3.28 ounces per ton silver (3.28 oz/t Ag), 1.88% lead (Pb) and 2.22% zinc (Zn), in the M&I category. The Inferred resource is an estimated 17,180,000 metric tons at grades of 5.12 oz/t Ag, 2.05% Pb and 2.04% Zn.

Silver X is producing silver, gold, lead and zinc at its Tangana Mining Unit. Another mining unit at Nueva Recuperada, Plata, was shown in a recent resource update to contain 950,000 tons of 12.4 oz/ton silver equivalent (Ag eq) in the Indicated category and 5,400,000 tons of 9.8 oz/ton Ag eq in the Inferred category. Silver X plans to start production at the past-producing Plata mine next year.

In the interim, the company will continue looking to exploit the tremendous exploration upside at the project. On its district scale-sized land package, Silver X has identified more than 200 drill targets. For example, brownfield targets at Tangana include the San Antonio vein, the Positiva vein system and the nearby Ccasahuasi gold target.

Also, Silver X management is seeking mergers and acquisitions (M&A) opportunities in overlooked historical mining districts to which it could apply its exploration, development and production expertise, the corporate presentation indicated.

Outlook for Silver is Bullish

Silver pushed through the key US$35 per ounce (US$35/oz) resistance level for the first time in more than 10 years recently and held there, reported The Jerusalem Post in a June 24 article. It reached US$36.20/oz while the gold price dropped US$50/oz, on the morning of June 23.

"With gold easing amid geopolitical calm, analysts see room for silver to climb further," the article read. "With demand strong and gold softening, the outlook for silver remains bullish, at least for now," the article noted.

Heraeus, a company in the precious metals business, says that investors rotating out of gold is benefiting silver, as is investors rushing into platinum, reported Ernest Hoffman, Kitco News, on June 23. From January through May, growth of silver exchange-traded fund holdings lagged gold, but this month, the reverse has happened.

"The first two weeks saw holdings grow by 18,200,000 ounces (18.2 Moz) to 759 Moz," Heraeus said. "Year-to-date inflows total nearly 41 Moz, proportionally a much greater growth rate than gold."

Further, the silver price superseded its previous high three weeks in a row, hitting US$37/oz, albeit temporarily. By June 19, it had pulled back to below US$36/oz. Most recently, when the markets closed on June 24, the price was US$35.88/oz.

In a June 22 MarketBeat article, Contributing Author Jeffrey Neal Johnson made the case for investing in silver with four points. One, silver is an industrial metal used in numerous applications and is critical to high-growth sectors, including photovoltaics and electronics inside electric vehicles. As such, demand for the metal is high given its role in the green energy transition. Two, the silver market is imbalanced; silver is in its forecasted fifth consecutive year of a structural supply deficit. Three, favorable macroeconomic trends are boosting silver. Four, the gold:silver ratio is higher than historical averages, suggesting silver may be undervalued relative to gold and thus has more room to run in a precious metals bull market. 

"The combined forces of relentless industrial demand, a structural supply deficit, and a supportive macroeconomic environment create a powerful and timely investment case," Johnson wrote. "These factors suggest that silver may offer more compelling return potential to investors seeking growth in the current market."

Johnson recommended investing in mining stocks due to their operational leverage, noting they can offer significant gains during a silver bull market.

321gold's Stewart Thomson wrote on June 24 that junior stocks are worth a look-see.

"Junior stock investing isn't for everyone, especially with size, but as the gargantuan gold bull era rollout continues, these miners look set to outperform everything!" he wrote.

He added that his buy zone for silver is US$34–35 and should silver trade there, "it would likely be a de facto gift that should not be ignored."

Citi Research sees silver possibly reaching US$40/oz within the next six to 12 months and perhaps even US$46/oz by Q3/25 if its current momentum persists, reported The Jerusalem Post.

Long Forecast expects that by year-end 2025 (YE25), the gold price will be US$36.09/oz. By YE26, it will have climbed to $38.48/oz. By YE27, a drop to $36.60/oz silver is projected. By YE28, a slightly lower price of US$36.04 is anticipated.

The Catalyst: Continued Expansion

Silver X is looking to expand Nueva Recuperada's resource, expand production and expand mill capacity, the company said. To expand the resource, it started drilling 8,000m at the Tangana Mining Unit earlier this year then will release, in 2025, a combined preliminary economic assessment of Tangana and Plata.

The miner is continuing its production ramp-up at Tangana to 720 tons per day (tpd), and intends to start mining at Plata next year. Also in 2026, plans include expanding the mill capacity to 2,000 tpd.

Targets Imply 200%-Plus Return

Technical Analyst Clive Maund wrote to Streetwise Reports exclusively that recent action involving Silver X stock is "very bullish." The dip in its share price over the past several trading days is viewed as normal as it consolidates its gains since mid-May above its 200-day moving average.

"This is viewed as presenting a buying opportunity," the analyst wrote. "Downside from here looks very limited with the current tight pattern viewed as a bull flag that will lead to renewed vigorous advance."

Sid Rajeev, Fundamental Research Corp. analyst, has a Buy rating and a fair value target on the silver producer that implies a 230% return, as noted in his May 28 research report.

"We believe AGX's main positives are its potential for rapid production growth and substantial valuation discount compared to peers," wrote Rajeev.

Red Cloud Securities Mining Analyst Alina Islam also rates Silver X Buy, her May 25 research report indicates. From the current share price, the return to her target is 226%.

Ownership and Share Structure

According to Refinitiv, five strategic entities own 19.59% of Silver X Mining. The Top 3 are Baker Steel Resources Trust Ltd. with 8.77%, CEO Garcia with 6.42% and Sebastian Wahl with 4.38%.

The rest is in retail. There are no institutional investors at this time.

The silver miner has 222.48 million (222.48M) outstanding shares and 178.9M free float traded shares. Its market cap is CA$37.26M. Its 52-week range is CA$0.115–0.38 per share.