Mining Legend Eric Sprott Backs Highlander Silver with $40M, Fueling High-Grade Peruvian Gold-Silver Project

TORONTO, Jan. 30, 2026 – Highlander Silver Corp. (TSX: HSLV) has secured a monumental US$40 million strategic investment from billionaire mining magnate Eric Sprott, a move that provides a powerful endorsement and substantial financial runway for the company’s world-class San Luis gold-silver project in Peru. The closing of the non-brokered private placement, announced today, is seen by market watchers not just as a capital infusion, but as a significant vote of confidence from one of the most influential figures in the precious metals sector.

Under the terms of the deal, Highlander Silver issued 8,060,226 common shares to Mr. Sprott at a price of C$6.80 per share. The company has stated the proceeds will be used to aggressively advance its mineral projects, with a primary focus on its flagship San Luis asset, as well as for working capital and general corporate purposes. This strategic funding arrives at a pivotal moment, with precious metals markets riding a wave of unprecedented momentum and Highlander poised to unlock the potential of a globally significant deposit.

The Sprott Effect: A Billionaire's Bet on Bonanza Grades

An investment from Eric Sprott often carries more weight than the dollar amount alone. Known for his deep research, contrarian views, and a multi-decade track record of spectacular successes in the junior mining space, his financial backing is widely interpreted as the “Sprott Effect”—a powerful market signal that can attract a flood of new investor interest and validate a company's strategy. Sprott has built a reputation for identifying undervalued companies with high-grade precious metal assets, a profile that Highlander Silver fits perfectly.

His bullish outlook on precious metals, particularly silver, is well-documented. Sprott has been a vocal proponent of silver's potential, often highlighting what he sees as a dramatic undervaluation relative to gold. This view is underpinned by a growing structural deficit in the silver market, with record industrial demand—fueled by its critical role in solar panels, electric vehicles, and AI technology—outstripping supply. With a projected silver deficit of 117 million ounces for 2026, Sprott’s investment in a high-grade silver developer like Highlander is a direct play on his long-term market thesis. His participation sends a clear message: he believes the San Luis project holds the grade and scale to become a significant producer in a supply-constrained market.

Fueling Peru's Next High-Grade Mine

The US$40 million in funding is set to act as high-octane fuel for the San Luis gold-silver project. Located in Central Peru, the project is not just another mining asset; it is a geological marvel. San Luis boasts Indicated Mineral Resources of 356,000 ounces of gold at an astonishing grade of 24.4 g/t and 8.4 million ounces of silver at 579 g/t. These metrics firmly place it among the top 10 highest-grade undeveloped gold and silver projects on the planet.

Highlander has laid out a clear path forward, and this new capital will accelerate every stage. The company initiated its first drilling program at the property in June 2025, targeting untapped mineralization at the Bonita vein system. The funds will support an expanded and more aggressive exploration campaign across the district, including testing deeper porphyry targets.

More critically, the investment directly supports the transition from explorer to developer. Highlander plans to commence permitting in the first quarter of 2026 for a 350-tonne-per-day starter operation at the project’s Yalán zone. With an estimated capital budget of around $70 million for this initial phase, Sprott’s $40 million injection covers a substantial portion of the required funding, de-risking the path to a construction decision. The company is targeting potential production as early as 2028, aiming for an initial run rate of approximately 80,000 ounces of gold and 2 million ounces of silver per year.

A Confluence of Smart Money

Eric Sprott is not the only heavyweight investor in Highlander’s corner. His name joins an already formidable list of significant shareholders that includes the Augusta Group and the Lundin family. This convergence of “smart money” creates a backing that is exceptionally rare for a junior mining company.

The Augusta Group is a mining-focused management team renowned for its Midas touch, having generated over C$4.5 billion in value through exit transactions since 2011. Their involvement provides Highlander with elite strategic oversight and a proven playbook for advancing and monetizing world-class assets. The Lundin family, a globally recognized mining dynasty, adds another layer of long-term strategic support and financial acumen. The collective presence of Sprott, Augusta, and the Lundins provides Highlander with an unparalleled combination of capital, technical expertise, and market credibility, insulating it from many of the financing and development risks that plague its peers.

Riding the Precious Metals Supercycle

The timing of this strategic investment could not be more opportune. The transaction closes on the heels of a historic year for precious metals. In 2025, gold prices surged by over 64%, while silver delivered an even more explosive gain of nearly 148%, closing November at an all-time high. This bull market is driven by a perfect storm of macroeconomic factors, including persistent inflation concerns, a global de-dollarization trend led by central banks, and geopolitical uncertainty.

With analysts and influential investors like Sprott forecasting gold to push past $3,000 per ounce and silver to challenge the $50 mark, the economic fundamentals for developing a project like San Luis have never been stronger. Highlander Silver is now positioned in an enviable sweet spot: it holds a top-tier, high-grade asset in a mining-friendly jurisdiction, is guided by the industry’s most successful investors, and is now substantially funded to execute its development plan in what many believe is the early innings of a new precious metals supercycle.