First Majestic accelerates Springpole Silver Stream payment with cash-only $5m deal

First Mining Gold Corp. has finalized an amended agreement with First Majestic Silver Corp., accelerating the final Springpole Silver Stream payment through a $5 million cash-only transaction. The revision to the 2020 silver purchase agreement marks a significant step in First Mining’s financing strategy as it continues advancing the Springpole Gold Project, one of Canada’s largest undeveloped gold assets.

The agreement, which restructures a prior multi-tranche payment schedule, provides financial clarity for both companies. In addition, First Mining has amended the terms of previously issued warrants to First Majestic, reducing the exercise price while extending the expiration period. These adjustments are expected to impact the company’s capital structure and share performance in the coming years.

What Does the Amended Springpole Silver Stream Deal Mean for First Mining?

Under the terms of the revised Springpole Silver Stream agreement, First Majestic Silver has committed to making a $5 million cash payment by March 31, 2025. This final payment replaces the original installment structure under the Silver Purchase Agreement, which First Mining, First Majestic, and Gold Canyon Resources Inc.—a First Mining subsidiary—initially signed in 2020.

First Majestic’s commitment to finalizing this silver stream deal underscores its long-term stake in the Springpole Gold Project, which holds over 20 million ounces of silver resources alongside its substantial gold reserves. The stream agreement secures First Majestic a portion of the future silver production from Springpole, reinforcing its interest in high-quality silver assets within North America.

For First Mining, the simplified financial structure eliminates uncertainties tied to staggered payments, allowing for greater flexibility in advancing Springpole Gold Project permitting and feasibility studies. The company submitted a final Environmental Impact Statement (EIS) in November 2024, a critical milestone in the regulatory approval process. If approved, Springpole would become Ontario’s largest silver producer and a major supplier for the North American clean energy sector, particularly in electric vehicle (EV) manufacturing and solar technology.

How Do the Warrant Amendments Impact First Mining’s Capital Structure?

As part of the revised agreement, First Mining has also modified the terms of 32,050,228 common share purchase warrants issued to First Majestic in 2020. Initially set to expire on July 2, 2025, these warrants will now be extended until March 31, 2028, with the exercise price adjusted from $0.374 per share to $0.20 per share.

This amendment could influence First Mining’s stock performance, as a lower exercise price may increase the likelihood of First Majestic executing the warrants, potentially introducing new shares into the market. However, First Mining has included a trigger clause: if the company’s Toronto Stock Exchange (TSX) closing price reaches or exceeds $0.30 for 45 consecutive trading days, it may accelerate the warrant expiration date to 30 days following the announcement of the acceleration.

Toronto Stock Exchange regulators have conditionally approved the revised warrant terms, which will become effective ten business days after the announcement. First Mining has confirmed that none of the extended warrants are held by company insiders, maintaining transparency in its capital structure adjustments.

What Role Does the Springpole Gold Project Play in First Mining’s Growth Strategy?

Located in northwestern Ontario, the Springpole Gold Project is among Canada’s most advanced undeveloped gold assets, with a measured and indicated resource of 4.6 million ounces of gold and 24.3 million ounces of silver. The project has the potential to become a large-scale, low-cost open-pit operation, supporting both domestic and global gold production needs.

With environmental approvals now in the final stages, First Mining is moving closer to securing full regulatory clearance, positioning Springpole as a critical economic driver for Ontario. Once operational, it is expected to create thousands of jobs, generate significant government revenues, and benefit local and Indigenous communities through economic partnerships and infrastructure development.

The importance of Springpole extends beyond gold production. With silver playing an increasingly vital role in renewable energy applications, including solar panels, battery technologies, and semiconductor manufacturing, securing a domestic silver supply aligns with Canada’s strategic resource development goals. The Springpole Silver Stream deal with First Majestic reflects broader industry trends where silver-producing companies seek long-term exposure to high-grade assets.

How Does First Mining’s Portfolio Compare to Other Emerging Gold Developers?

First Mining’s business strategy extends beyond Springpole, with a diversified asset portfolio that includes the Duparquet Gold Project in Quebec. Situated within the Abitibi Greenstone Belt, Duparquet is a preliminary economic assessment (PEA)-stage project with a historically strong gold endowment.

The company also holds significant interests in the Cameron Gold Project in Ontario and joint ventures in the Pickle Crow Gold Project with Firefly Metals Ltd. and the Hope Brook Gold Project in Newfoundland, developed in partnership with Big Ridge Gold Corp.

Compared to other junior gold developers, First Mining’s portfolio is distinguished by its focus on high-resource, development-stage projects rather than early-stage exploration. By securing strategic partnerships—such as the Springpole Silver Stream with First Majestic—the company has adopted a non-dilutive financing approach, leveraging asset-backed agreements rather than extensive equity issuances.

What Are the Market Implications of First Mining’s Latest Agreement?

The revised Springpole Silver Stream deal and warrant amendments come at a time when junior mining stocks are facing mixed investor sentiment. While gold prices remain above $2,000 per ounce, the broader equities market has exhibited volatility, impacting valuations across the sector.

For First Mining, the deal’s financial clarity could support its share price stability, reducing uncertainties tied to phased payments and complex financing structures. However, the adjusted warrant pricing at $0.20 per share introduces potential dilution concerns, especially if exercised at a time when the stock remains below its historic trading highs.

Investors will closely watch First Mining’s progress in securing full permitting for Springpole Gold Project, as environmental approval remains a key catalyst for future stock movement. A successful permit would pave the way for feasibility study completion, financing discussions, and eventual construction decisions, potentially transforming the company’s valuation outlook.

With First Majestic Silver reaffirming its investment through the accelerated Springpole Silver Stream payment, confidence in the project remains strong. As global demand for silver intensifies, particularly in clean energy applications, the long-term value proposition of Springpole’s silver reserves may become even more pronounced.