Southern Silver Exploration (SSV.V) is expanding its asset base as the company recently signed an agreement with a private company to acquire full ownership of the Nazas silver-gold-lead-zinc property in Mexico’s Durango state. The project is located just 15 kilometers east of Endeavour Silver’s Pitarilla deposit, which hosts one of the largest silver resources in Mexico. According to Southern Silver’s technical team, the Nazas project has a similar host stratigraphy and mineralizing systems like Pitarilla.
Southern Silver can obtain full ownership of Nazas by making cash payments of US$130,000 over a three year period with semi-annual payments of US$25,000 after the initial six months and as long as the asset isn’t in production. The company also had to commit to drilling at least 8,000 meters during a four year period while the company will also have to cover US$25,000 in concession taxes. The seller will also obtain a 2% NSR on the current claims, a 1% NSR on any of the new claims ‘within an area of influence’ and a 0.5% NSR on third party owned lands within the area of influence. The royalty rates will be cut in half as soon as the seller receives US$10M in cumulative payments (including royalty payments and the pre-production cash payments).
Disclosure: The author has a long position in Southern Silver Exploration. Southern Silver is a sponsor of the website. Please read the disclaimer.
