Southern Silver Exploration (TSXV: SSV) acquired Electrum Global Holdings’ 60% indirect working interest (for a total 100% interest) in the Cerro Las Minitas project in Mexico.
In a press release, Southern Silver said that as consideration for the acquisition, it must pay Electrum an aggregate $15 million in a combination of cash and common shares, of which $5 million and 2,336,590 common shares have now been paid.
“Sole ownership of the CLM project inclusive of the significant resources developed to date allows us great latitude in developing the project for substantial resource growth,” Lawrence Page, Southern Silver’s president and director, said in the media brief.
“The transaction also provides a 150% increase in attributable resources which is highly accretive to Southern Silver shareholders. An extensive diamond drill program will begin within the next two weeks designed to develop previously identified mineralization east of the intrusion for ultimate inclusion into the existing resource calculation.”
The Cerro Las Minitas project is an advanced exploration stage polymetallic Ag-Pb-Zn-Cu skarn/CRD project located in southern Durango. The property sits at the heart of Mexico’s Faja de Plata, which hosts multiple world-class mineral deposits such as Peñasquito, San Martín, Naica and Pitarrilla.
The project contains a mineral resource estimate at a 175g/t AgEq cut-off, of 134Moz AgEq = 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn in the indicated category, and 138Moz AgEq = 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn in the inferred category.