JOHANNESBURG (miningweekly.com) – Canadian precious metals producer SilverCrest has signed a five-year options agreement with TSX-V-listed Evrim Resources enabling it to acquire a 100% interest in Evrim’s Cumobabi property, in Mexico.
To earn the 100% interest in the property, SilverCrest will need to pay $75 000 upon signing the options agreement, followed by $50 000 on each anniversary thereafter, the company explained on Tuesday.
In addition, SilverCrest would also have to complete a minimum of $500 000 in exploration expenditure by the second anniversary of the agreement and deliver a production notice within five years specifying mine and construction plans with accompanying permits.
Upon vesting, SilverCrest would not be required to make yearly payments; however, Evrim would retain a 1.5% net smelter return royalty on the Cumobabi property.
SilverCrest explained that its acquisition of the Cumobabi property significantly consolidated its land position in the vicinity of the Santa Elena mine.
“When combined with the recently acquired option on the Ermitaño property, SilverCrest now controls over 300 km2 of mineral rights, prospective for gold and silver resources, adjacent to, or in the near vicinity of, the Santa Elena mine. The lands are considered to be highly prospective and are expected to play a strategic role in the organic growth of SilverCrest's resources,” the company said.
SilverCrest planned to start exploration work on the Cumobabi property next year.