BP Silver Corp. ( TSXV: BPAG ) Commences Drilling at the Cosuño Silver Project and Secures a One‑Year Payment Deferral

BP Silver Corp., a Canadian mining investment listed on the TSX Venture Exchange, announced today that drilling has begun at its flagship Cosuño Silver Project in the Potosí department of Bolivia. The company also entered into a Memorandum of Understanding (MOU) with the current owner of the project on 5 November 2025, extending the deadline for certain remaining payment obligations under the existing stock purchase agreement.

1. The Significance of the Drilling Milestone

  • Phase‑1 drilling marks the first substantive operational activity on the Cosuño site since the company’s acquisition of the project.
  • The project sits within one of Bolivia’s most prolific silver‑mining districts, giving it inherent upside potential in a market that continues to prize high‑grade, low‑cost silver resources.
  • By initiating drilling, BP Silver moves beyond the speculative, deal‑making stage into tangible exploration, thereby creating immediate value for shareholders and signalling managerial resolve to deliver on the project’s promise.

2. Strategic Financial Management

  • The MOU, signed just weeks before the drilling launch, effectively postpones the payment of remaining purchase sums for a full year.
  • This deferment aligns cash‑flow management with the company’s exploration schedule, ensuring that capital is available for drilling, assay work, and subsequent feasibility studies.
  • In a market where silver prices have been volatile, the deferral mitigates the risk of liquidity strain while maintaining the project’s momentum.

3. Corporate Governance and Leadership

  • Tim Shearcroft, CEO of BP Silver Corp., underscored the company’s commitment to the Cosuño project.
  • His statement, “We are very pleased to begin the long‑anticipated Phase‑1 drilling program in Cosuño,” reflects a decisive shift from strategic planning to execution.
  • The company’s management has repeatedly emphasized the need for disciplined capital allocation and transparent reporting, reinforcing investor confidence.

4. Market Context and Shareholder Implications

  • Share price: As of 16 November 2025, the stock closed at CAD 0.43, well below the 52‑week low of CAD 0.045 but still within the range that reflects the speculative nature of early‑stage mining assets.
  • Market cap: With a market value of approximately CAD 161,550, BP Silver remains a small‑cap entity, making it sensitive to operational milestones and market sentiment.
  • The initiation of drilling, combined with a favorable payment deferral, is likely to be viewed positively by analysts, potentially narrowing the spread between the 52‑week high (CAD 0.55) and the current price.

5. Risk Assessment

  • Operational risk: Drilling in Bolivia presents challenges related to logistics, political stability, and environmental compliance.
  • Financial risk: Although the payment deferral eases immediate pressure, the company still faces future capital requirements that may necessitate additional fundraising.
  • Market risk: Silver prices remain subject to global supply‑demand dynamics; a prolonged downturn could delay project economics.

6. Conclusion

BP Silver Corp.’s commencement of drilling at the Cosuño Silver Project, coupled with a strategically timed payment deferral, demonstrates a calculated approach to asset development and capital stewardship. While the company continues to navigate the inherent uncertainties of junior mining ventures, these actions position it to capitalize on a promising silver resource and deliver incremental shareholder value.