Silver Mines to Acquire Kingsgate’s Bowdens Silver Project, New South Wales
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Silver Mines will control 220 million ounces of silver equivalent if the acquisition of the Bowdens Silver Project in New South Wales from Kingsgate Consolidated is completed.
Bowdens is located in central New South Wales, 26 kilometers east of Mudgee and is a bulk tonnage, low sulphidation epithermal silver deposit.
A heads of agreement has been signed to acquire 85% of the project from an unlisted company which in turn has an agreement with Kingsgate. The project, with its 182 million ounce silver Eq. resource, would rank Silver Mines as the largest pure silver company in Australia.
The acquisition comes at a time of consolidation in the gold and silver sector, which Silver Mines is a part of, having secured agreements relating to three silver deposits all of which are located in New South Wales.
The Webbs Deposit is 100 percent owned by Silver Mines while the Conrad Deposit, recently acquired from Malachite Resources and is subject to a sale and purchase agreement pending completion.
Attempting to acquire projects with JORC resources that provide a low entry price to silver assets on a per ounce basis is central to the strategy.
Consideration would require Silver Mines to acquire 100 percent of SIHA; the company with the interest in Bowdens and to pay it $2,000,000 within the next 20 days.
This would be followed by an A$18,000,000 loan to SIHA before the end of June 2016 and if these are completed Silver Mines will issue $4million worth of shares at $0.001 each to complete the purchase of SIHA.
The shares on issue would increase from 5,836,717,945 to 19,836,717,945 before to any potential share consolidation on completion.
The Bowdens deposit remains open in several directions and at depth with potential to increase the resource base.
Source: (March 4, 2016) Proactive Investors
About Silver Mines
Silver Mines is listed on the Australian Securities Exchange.
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