Southern Silver to pay $15m for 100% interest in Mexican project
Southern Silver Exploration (TSXV: SSV) executed an agreement with Electrum Global Holdings to purchase Electrum’s 60% indirect working interest in the Cerro Las Minitas project in Durango, Mexico.
The indirect working interest is going to cost Southern Silver $15 million, payable in cash and common shares. The purchase will increase the company’s working interest in the project from 40% to 100%.
Through the transaction, the Vancouver-based miner will acquire an additional 49.9 million ounces of silver and 1.35 billion pounds of combined lead and zinc to its account based on the current National Instrument 43-101 Mineral Resources estimate of the CLM project.
“Sole ownership of the 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 chairman and director, said in a media statement.
“The transaction will also provide a 150% increase in attributable resources which will be highly accretive to Southern Silver shareholders.”
Cerro Las Minitas is an advanced exploration stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD project located in southern Durango, precisely at the heart of the Faja de Plata of north-central Mexico.
A 2019 mineral resource estimate showed, for the indicated category at a 175g/t AgEq cut-off, a total of 134Moz AgEq: 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb Zn. In the inferred category, the estimate yielded 138Moz AgEq: 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn.