Premier Gold to Acquire Americas Silver’s San Felipe Property, Mexico
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Premier Gold Mines has entered into an option acquisition agreement with Americas Silver Corporation (ASC) to acquire 100 percent interest in the San Felipe Property, located 55 kilometres from the company’s Mercedes Mine in Sonora State, Mexico. Hochschild is the underlying owner of the San Felipe Property.
The San Felipe Property consists of several claim groups that comprise 16,265 ha with several poly-metallic zones that hosts a high-grade historic mineral resource and has potential for future discoveries.
The company plans to assess potential development options which may include: 1) Adding a parallel floatation circuit at Mercedes to increase annual output in the near-term; 2) Building a stand-alone mill at San Felipe; 3) Bringing San Felipe into development at the end of the Mercedes mine-life and processing mineralized material at the existing complex.
“San Felipe represents a strategic asset, adding resources and providing a near-term development opportunity in close proximity to an existing operation. We will assess options to bring San Felipe to production to complement existing production in Mexico,” said Ewan Downie, president and CEO.
An environmental impact statement (EIA) will be transferred to Premier upon closing which should allow for a shortened timeline to production. San Felipe is partially developed with an existing ramp and several mining related facilities already constructed on-site. With 69,000 metres of drilling on the property and several existing deposits open for expansion, the company believes that there is potential for new discoveries and increased mineral resources at San Felipe.
As consideration, Premier will pay America’s Silver $7.0 Million on closing, and make additional payments of $1.9 Million upon the making of a positive construction decision and then upon achieving commercial production. Premier will also make eight quarterly payments of $750,000 to Hochschild pursuant to the underlying option agreement. There is no royalty payable on the property. Completion of this transaction is subject to customary closing conditions for a transaction of this nature.
About Premier Gold Mines
Premier Gold Mines Limited is a gold-producer with a respected exploration and development pipeline of precious metal projects in proven, accessible and safe mining jurisdictions in Canada, the United States, and Mexico.
To stop by Premier Gold Mines’ website, CLICK HERE
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