Precious metals explorer Silver Elephant has put on hold payments for the Sunawayo silver/lead mining project, in Bolivia, pending verification of the status of the project’s title and environmental permit.
The TSX-listed company acquired its interest in the Sunawayo project pursuant to a sales and purchase agreement (SPA) executed with vendors in August last year.
The vendors had been notified of their breach of certain disclosure representations in the SPA, Silver Elephant said on Friday.
To date, the company has paid $300 000 and has no further contractual obligations unless it wishes to pursue the SPA further to acquire Sunawayo.
By excluding future Sunawayo payments, Silver Elephant has total mineral property cash payments of $250 000 for the remainder of 2021 and $400 000 for 2022.
Silver Elephant’s focus is the Pulacayo project, where resource expansion and environmental permitting is under way. Pulacayo, also in Bolivia, hosts 107-million ounces of silver in the indicated category.
Silver Elephant closed 6.5% lower at C$0.36 a share on Friday.