TSX-V-listed GR Silver Mining on Monday announced that it would buy the past producing Plomosas project, in Mexico, from NYSE- and TSX-listed First Majestic Silver.
The transaction consolidates ownership of advanced stage projects in the Rosario mining district into a single company, bolstering the likelihood of new discoveries of gold and silver deposits.
Located within 5 km of GR Silver’s San Marcial project, the 8 515 ha Plomosas project includes a shallow historical silver/gold/lead/zinc underground mine, four targets at drilling/resource stage and 16 exploration targets, 30 km of under-explored mineralised veins/structures and an extensive drill and exploration database including more than 500 recent and historical drill holes.
GR Silver Mining president and CEO Marcio Fonseca commented that the signing of the share purchase agreement and the ultimate acquisition of the Plomosas project, together with the associated infrastructure and exploration database, would allow the company to advance its hunt for additional high-grade silver and gold resources in 2020.
“The incorporation of this project's extensive database, together with knowledge gained during the last two years exploring, drilling, and expanding the resource at the nearby San Marcial project, provides superb vectors to achieve new discoveries of high-grade deposits on the Plomosas project. By controlling 100% of a large concession portfolio in the eastern portion of the Rosario Mining District, I believe GR Silver will own the most attractive mineralized prospects in a favourable geological setting similar to other multimillion-ounce mining districts along the western border of the Sierra Madre Occidental in Mexico.”
GR Silver will pay $100 000 in cash, grant it a 2% net smelter return royalty (NSR) on the Plomosas project with half of the NSR being subject to a buy-back option for $1-million and the issuance of that number of common shares of GR Silver as is equal to 19.9% of the total issued common shares of GR Silver.