Silverco Mining Ltd. has signed a binding letter dated January 19, 2026 to acquire Nuevo Silver Inc. via a three-cornered amalgamation, issuing 16,802,316 Silverco shares so that former Nuevo Silver shareholders will own approximately 34% of the combined company and existing Silverco shareholders about 66%. Nuevo Silver has a share purchase agreement to acquire 100% of the producing La Negra Silver Mine in Querétaro, Mexico, for approximately US$50 million (about C$69.2 million), funded in part by a non-brokered subscription receipt financing of about US$30.3 million (approximately C$41.9 million). The Silverco transaction adds immediate production, cash flow and roughly US$8 million in cash (about C$11.1 million), while diversifying Silverco’s asset base and operating presence in Mexico. Silverco will assume approximately US$11 million in La Negra-related debt (about C$15.2 million), US$12.5 million in milestone payments due in Q1 2027 (about C$17.3 million), and up to US$5 million in contingent payments potentially due between Q1 2027 and Q1 2028 (about C$6.9 million). Closing is subject to customary regulatory and TSX Venture Exchange approvals, completion of Nuevo Silver’s La Negra acquisition, any required technical report, a favourable fairness opinion and Silverco board approval; the deal is classified as a related party transaction under MI 61-101, with exemptions relied upon for valuation and minority approval.

Canaccord Genuity Corp. is financial advisor to Silverco, DLA Piper is Silverco’s legal counsel, and Cassels Brock & Blackwell LLP advises Nuevo Silver.