At PDAC 2026 in Toronto, InvestorNews host Tracy Hughes spoke with Peter Clausi, Director and Vice President of Capital Markets at Silver Bullet Mines Corp. (TSXV: SBMI) (OTCQB: SBMCF), following the company’s announcement of a significant five-year agreement with global commodities trading firm Ocean Partners. The deal, announced during the conference, commits Ocean Partners to purchase all of Silver Bullet’s production from its Arizona operations for the next five years—an agreement that places the junior miner in rare territory for a microcap producer. “This was just very fortunate timing,” Clausi said from the PDAC floor. “We’ve been working with Ocean Partners to reach a transaction for some time, and when it came together we announced it immediately because of the material nature of the news.”
Ocean Partners is widely recognized in the metals industry for providing financing, trading, and offtake arrangements for producers around the world. For Silver Bullet, the relationship represents validation of its projects and operational approach. “How does a microcap get the interest of a goliath?” Clausi said. “Quality of the projects.” The company has assembled a portfolio of past-producing mines in Arizona, many acquired at relatively modest cost. Ocean Partners conducted site visits, reviewed the company’s milling operations, and carried out its own due diligence before agreeing to the arrangement. “We have very high-quality past producer projects,” Clausi said. “Arizona’s full of them, and we’ve been fortunate to acquire some excellent properties.”
Silver Bullet’s strategy centers on a “hub-and-spoke” model, anchored by a company-owned mill supplied by several nearby mines. The company now has five producing or near-producing properties expected to feed the facility. Among them are the KT Mine, which has delivered strong gold concentrate numbers, and the Gold Queen and Columbia projects, where historical data points to significant copper potential. Under the agreement with Ocean Partners, the company expects to sell all metals produced—including silver, gold, and copper—through the offtake arrangement.
Management has intentionally focused on producing concentrate rather than moving further downstream in the refining process. “Pouring doré is another step,” Clausi explained. “You need different equipment, more capital, and there’s more that can go wrong. We can produce concentrate and we have buyers for it.” With the offtake agreement now secured, the company’s next steps will focus on scaling operations, acquiring the additional equipment needed to increase production, and meeting its supply commitments under the Ocean Partners agreement.
Shareholders, Clausi said, should expect updates on payments related to previous shipments as well as announcements regarding new equipment purchases required to expand output. While growth will require capital, the company is exploring financing options carefully. “I don’t know,” Clausi said when asked about raising additional funds. “Management doesn’t want to. We’re looking at different forms of financing to get the equipment we need without unnecessary dilution.” Clausi closed the discussion with a line he has repeated often over the years, reflecting the company’s disciplined approach to building its business. “The pen is mightier than the drill bit,” he said with a smile.
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