Silver Mines Ltd.

Silver Mines Ltd. is a junior silver development company headquartered in Sydney, Australia, operating primarily in Australia. The company's portfolio consists of 1 development project, in addition to several early-stage exploration prospects. Key assets include Bowdens Silver. The organization's business model is centered on exploration and development, utilizing advanced technical methodologies to define and advance its mineral assets. A key operational characteristic is the integration of a conventional milling circuit with differential flotation to produce multiple concentrates, indicating a capacity for complex polymetallic processing. The company actively engages in research and development programs in collaboration with academic institutions and industry consultants to enhance geological mapping and targeting. This includes the application of proprietary technologies such as predictive geochemistry machine-learning algorithms and 2D seismic reflection surveys to model subsurface structures and identify prospective zones. This technology-driven approach aims to improve exploration efficiency and de-risk development. The operational framework is designed to support a transition from exploration to production, with a focus on optimizing all aspects of potential development, including mine design and metallurgical processes, to improve economic viability and operational performance.

Strategic focus centers on transitioning the flagship asset from pre-development into a full-scale mining operation. A core component of this strategy is an ongoing optimization program for the existing feasibility study, which examines all facets of the development including mine design, metallurgy, and process design to enhance economic viability and reduce environmental impact. The enterprise aims to expand its resource base through continued exploration drilling designed to test for extensions to the known mineral system and to infill under-sampled areas. Capital allocation priorities include funding pre-development works, ongoing exploration, and maintaining financial discipline to maximize shareholder value. The company also pursues regional exploration across its tenement holdings to identify and advance new targets. A key objective is to position the organization as a world-class mining operation by systematically meeting development milestones and advancing its portfolio of exploration projects.

Executive leadership is headed by a Managing Director with over 25 years of experience in mining, business development, and finance, including senior operational roles with WMC Resources and financial positions at Citigroup, UBS, and Canaccord. The board of directors consists of 4 members, 3 of whom are considered independent, including the Non-Executive Chairman. Due to its size, the full board performs the functions of the audit, nomination, and remuneration committees, with specific items addressed as distinct agenda items during board meetings. The company secretary is directly accountable to the board through the chairman on all matters related to the proper functioning of the board. Governance processes include annual performance evaluations of the board, its committees, and individual directors, as well as periodic reviews of senior executive performance. The framework is designed to align director and executive objectives with shareholder interests through a combination of fixed remuneration and long-term incentives.

The organization demonstrates its commitment to environmental, social, and governance principles through several specific initiatives. It has adopted the Digbee ESG disclosure platform, achieving an inaugural overall rating of BBB, which provides a framework for transparent reporting and continuous improvement. A key social achievement is the completion of a Native Title Agreement with the Warrabinga-Wiradjuri people, reflecting a dedication to respecting Indigenous rights and fostering inclusive development. The company's environmental policy emphasizes a commitment to a progressive rehabilitation plan, with restoration activities planned throughout the life of the mine. Community engagement is a cornerstone of its approach, focusing on providing local employment opportunities and supporting local businesses. The governance framework is supported by a formal Code of Conduct, a Whistleblower Policy, and an Anti-Bribery and Corruption Policy to ensure ethical business practices.

The corporate structure consists of the parent entity and several wholly owned subsidiaries, including Bowdens Silver Pty Ltd, which manages legal and development aspects of the primary asset, and Tuena Resources Pty Ltd, which holds other exploration projects. Another subsidiary, Bowdens Agriculture Pty Ltd, manages agricultural operations. A substantial shareholder is HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED, holding a 13.70% interest as of September 2024. Subsequent to the 2024 financial year, the company entered into a binding agreement for A$30.2 million in funding through convertible debentures with a specialized investment group that includes Bromma Asset Management Inc., led by Harry Lundin and Rick Rule, and MMCAP International Inc. SPC. This financing is secured by a general security interest over the assets of the company and its subsidiaries, which act as guarantors. The debentures have a 48-month maturity and are convertible into ordinary shares at a pre-determined price.