Silver Bow Mining (SBMT) said Tuesday that the US Bankruptcy Court for the District of Montana has approved its acquisition of specified assets comprising the Jefferson County Metallurgical Complex from Montana Tunnels Mining.

The company said it deposited $28.58 million into an escrow account prior to the court's approval. The funds are expected to be released to specified creditors over the next several days as payment instructions are finalized.

In return for directing the release of the escrow funds, Silver Bow received a senior secured note from Montana Goldfields, guaranteed by Montana Tunnels Mining.

The initial closing has been completed, but ownership of the complex will not transfer to Silver Bow until a final closing.

"Bankruptcy court approval and completion of the initial closing mark an important step toward securing strategic processing infrastructure in Montana," Silver Bow Mining Chairman and Chief Executive Travis Naugle said in a statement.