Sun Silver shortlisted for US$60m project funding tax credit

Application for US$60m Qualifying Advanced Energy Project Allocation Program in final stage
Funds to be used for development of SS1’s proposed high-quality silver paste production facility
Maverick Springs resource growth and antimony exploration continues

Special Report: Sun Silver has been pushed onto the shortlist for a US$60m tax credit from the American federal government for its Silver Paste project.

Sun Silver (ASX:SS1) has been selected by the US Department of Energy for the final application stage of its Qualifying Advanced Energy Project Allocation Program (48C Program) – which offers a 30% investment tax credit to projects that support advanced energy manufacturing and enhance US competitiveness in clean energy.

The company’s Silver Paste project aims to produce local high-quality silver paste, which is critical for improving the efficiency and sustainability of solar PV cells.

The proposed facility would enable Sun Silver to supply silver paste to solar photovoltaic (PV) cell manufacturers in the US, aligning with efforts by the US to reduce its dependence on China for silver paste supply and bolster domestic supply chains.

If chosen by the 48C Program, the company will receive a US$60m tax credit for its proposed US Silver Paste Production Facility and SS1 says early feedback suggests a positive recommendation is likely, based on Sun Silver’s initial submission.

“Concept papers were evaluated across multiple criteria and policy factors,” says a letter from the Department of Energy (DOE).

“This letter of encouragement does not convey any DOE judgement on the merits, viability, or profitability of the project separate from the 48C Program, only that the project is likely to receive a recommendation based on the concept paper received.”

Maverick Springs progress

SS1’s cornerstone asset, the Maverick Springs project in Nevada, is surrounded by several world-class gold and silver mining operations including Barrick’s Carlin mine.

Maverick Springs and surrounding silver projects. Pic supplied: SS1

There has been resource growth and encouraging signs at Maverick Springs of late, which now contains a 195.7Mt at 40.25g/t silver and 0.32g/t gold for 253.3Moz of contained silver and 2Moz of contained gold (423Moz of contained silver equivalent at 67.25g/t).

The deposit itself remains open along strike and at depth, with multiple thick mineralised intercepts located outside of the recently upgraded mineral resource.

Recent work also revealed anomalous results for antimony, a critical mineral that is being sought by the US government outside current China supply chain streams due to the Middle Kingdom’s recent export restrictions on the commodity.

This article was developed in collaboration with Sun Silver, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.