Southern Silver Exploration has signed an agreement with Electrum Global to acquire the latter’s 60% indirect working interest in the Cerro Las Minitas (CLM) project in Durango, Mexico for $15m.
Located about 70km to the northeast of the city of Durango in Durango State, the Cerro Las Minitas project is in advanced exploration stage focused on polymetallic Ag-Pb-Zn-Cu Skarn/CRD.
The CLM Project, which is said to be one of the larger undeveloped silver-lead-zinc projects in the world, is fully permitted to continue exploration with a strong potential resource growth profile.
Southern Silver to increase stake in Cerro Las Minitas Project to 100%
The agreement will increase Southern Silver Exploration’s stake in the project from 40% to 100%, giving it complete ownership of the premier, polymetallic deposit.
In addition to simplifying ownership structure of the CLM Project, the deal is expected to enhance Southern Silver’s market profile, making it more attractive takeover target.
In a press statement, Southern Silver Exploration said: “Because of Electrum’s current shareholdings in the Company, the purchase of Electrum’s 60% indirect working interest in the CLM Project is a related party transaction under Multilateral Instrument 61-101.”
The agreement is subject to regulatory approval and other closing conditions, including shareholder approval.
Covering an area of approximately 34,450ha, the property comprises 25 concessions and lies within heart of the Faja de Plata (Belt of Silver), which is claimed to be one of the most significant silver producing regions in the world.
Southern Silver chairman and director Lawrence Page said: “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.
“The transaction will also provide a 150% increase in attributable resources which will be highly accretive to Southern Silver shareholders.”
In April 2020, the company agreed to acquire the El Sol mineral claim from Monarca Minerals in Mexico.
