South American Silver extends option to acquire Escalones property, Chile

As per the revised terms of Option Agreement, the company needs to make an initial payment of $600,000, which has already been made, followed by four annual payments of $500,000 until 2017. A final payment of $3m on 30 June 2018 will conclude the purchase of the property.

South American Silver president and CEO Phillip Brodie-Hall said that the extension of the Escalones option agreement was made to preserve cash at a time when cash is such a precious resource.

"This new agreement will save us $2.4 million in the current year and adds to the substantial savings we have already made this year, including many millions that will be saved from the recently announced funding agreement for the Bolivian arbitration," added Hall.

"We believe we are positioning the company very well for the future and will continue to work hard for our shareholders."

Remaining terms of the agreement are, however, unchanged.

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