PERTH (miningweekly.com) – ASX-listed Silver Mines has signed a binding term sheet with fellow listed Thomson Resources for the sale of its Webbs silver/polymetallic project and the Conrad silver/polymetallic project, in New South Wales. 

Under the terms of the transaction, Thomson Resources would acquire both project areas along with associated information, cash security bonds and agreements in exchange for a nonrefundable payment of A$50 000 within five business days.

Thomson Resources would also pay the equivalent to the cash rehabilitation bonds in place, along with a share consideration of 75-million shares, valued at some a$5.7-million, which will be escrowed for a period of 12 months.

A further 50-million options, with an exercise price of 12.4c each and an expiry date of three years from the date of issue, will also be paid to Silver Mines.

On the completion of the transaction, Silver Mines will hold a near 19% stake in Thomson Resources, with Silver Mines MD Anthony McClure joining that company’s board as a nonexecutive director.

“The Webbs and Conrad projects represent high quality assets that have been a lesser focus for Silver Mines given our primary focus has been on developing the Bowdens Silver project in New South Wales,” said McClure.

“The concentrated effort that Thomson Resources will be able to afford these highly prospective assets will be particularly interesting and it is a great outcome for Silver Mines to be able to maintain exposure to them via an equity interest in Thomson Resources under the terms of the agreement.”

Thomson executive chairperson David Williams said that the Webbs and Conrad acquisitions would be game-changing for the company, and marked a transformative step.

“With these acquisitions, Thomson has added an additional layer of diversification to its existing high quality exploration portfolio and with a focused effort, Thomson will be able to quickly move into becoming a silver producer.

“Each project has a significant existing silver resource, and we are eager to commence our initial exploration programme to add additional ounces to the current resource,” he said.

In addition to the project acquisition, Thomson on Thursday announced a capital raise of A$6-million, through a share placement priced at 6.2c each.

Some 96.7-million shares will be placed under a single tranche under the company’s existing placement capacity, with the funds raised going towards exploration activities in New South Wales and Queensland.