The projects to be acquired by ESV Resources have historic silver-gold producing mines
ESV Resources has entered into letters of intent with Gran Colombia Gold and 1255269 B.C. (Guia Antigua Vendor) to acquire the Zancudo Project and the Guia Antigua Project, respectively.
The two projects are located in historic mining districts in Colombia, and will be acquired through all-stock deals, said the Canadian miner.
ESV Resources said that in connection with the completion of the deals, it expects to change its name to Denarius Silver as it transitions into a silver focused company.
According to Gran Colombia Gold, its Zancudo Project spans across a 1,052-hectare mining concession area in the Titiribi mining district in Antioquia. The project is made up of a past-producing silver-gold mine, called the Independencia Mine, located in the Middle Cauca Gold Belt.
The Zancudo Project is located near Gran Colombia Gold’s flagship Segovia mine.
It was acquired by Gran Colombia Gold in 2010. The company had subsequently given IAMGOLD options to acquire a 70% stake in the project by means of carrying out exploration and feasibility studies.
ESV Resources expects to form a joint venture with IAMGOLD to advance the Zancudo Project. The company will issue Gran Colombia with 27 million common shares in exchange for the latter’s stake in the project.
Gran Colombia executive chairman Serafino Iacono said: “In light of the bullish outlook for silver, we see the acquisition of an investment in ESV as a tremendous opportunity to participate in a new vehicle that is turning its attention to becoming a silver focused company looking to offer its shareholders exposure and leverage to the precious metal.”
ESV Resources deal with Guia Antigua Vendor
The other deal will see ESV Resources acquire 100% of Guia Antigua Vendor, which controls the Guia Antigua Project.
The project, which includes the past silver-gold producing Guia Antigua Mine, is located in the Segovia-Remedios mining district in Antioquia department.
As per the terms of the deal, Guia Antigua Vendor’s shareholders will be issued 15 million common shares of ESV Resources.