Silver Bow Mining Announces Initial Closing of Montana Tunnels Asset Purchase

What Happened Silver Bow Mining Corp. announced that on September 4, 2026 the U.S. Bankruptcy Court for the District of Montana approved and the company completed the initial closing of its previously announced asset purchase of certain Montana Tunnels Mining, Inc. (MTMI) assets under an Asset Purchase Agreement. As part of the Initial Closing the company released approximately $28.58 million from escrow to satisfy specified creditor obligations and received a senior secured promissory note from Montana Goldfields, Inc. (MTGF) for the same amount.

Key Details

• Court approval and Initial Closing date: September 4, 2026 (order entered under Sections 105(a) and 363 of the U.S. Bankruptcy Code).
• Cash released from escrow: ~$28.58 million total, including ~$4.27 million to Jefferson County, Montana and ~$20.78 million to the Montana Dept. of Environmental Quality; any excess escrow will be released to MTGF.
• Financing and security: MTGF issued a senior secured promissory note to Silver Bow for ~ $28.58M; the note bears no ongoing interest except 10% per annum on any principal unpaid at maturity. MTGF granted a general security agreement; MTMI guaranteed the note and pledged MTGF shares via a guaranty and pledge agreement and issued a mortgage securing certain MTMI real property/fixtures.
• Note maturity: the note matures earlier of (i) an event of default (subject to cure periods), (ii) Company termination of the APA for an uncured material breach by MTGF after 30 days’ notice, or (iii) 5:00 p.m. Denver Time on November 30, 2026. A support agreement with certain MTGF stockholders was also executed to support the Acquisition.

Why It Matters This 8-K documents the company’s material step toward acquiring Montana Tunnels assets by funding creditor obligations through escrow release and taking back a secured promissory note rather than cash. The transaction has multiple layers of security (note, security agreements, guaranty, pledge, mortgage) which affect the company’s risk exposure and recovery priority if issues arise. The note’s relatively short outside maturity (Nov. 30, 2026) and the 10% post-maturity interest provision on unpaid principal are important timing and financial considerations for investors. The company also indicated it will file proxy materials seeking shareholder approval related to issuance of contingent value rights (CVRs) and underlying shares, so investors should review forthcoming SEC filings and the proxy statement when available.