TSX-V-listed Silver One Resources has acquired a 100% interest in the past-producing Candelaria silver mine project, in Nevada, from SSR Mining.
In order to obtain its 100% interest, Silver One previously issued to SSR Mining a total $3.1-million of common shares over three years from 2017 to 2020, and assumed an $2.49-million reclamation bond.
Candelaria was a former producer, with Kinross Gold operating the openpit mine up until 1997. Historically it produced over 60-million ounces of silver. Operations were shut down owing to a major drop in silver prices to under $5/oz and the property was sold to SSR Mining.
Silver One entered into an agreement with SSR Mining in 2017, giving Silver One the ability to acquire a 100% interest in the project.
“Silver One is now poised to advance the project and continue evaluating the potential to bring the operation back into production. Silver One is currently updating the historical resource estimate to a current resource and completing metallurgical studies with the aim of completing an economic study. The property also hosts significant exploration potential for silver, gold and copper,” said president and CEO Greg Crowe.
As part of its acquisition of the Candelaria silver mine project, the company did not grant a royalty to SSR Mining.
Prior to the company's acquisition of Candelaria silver mine project, Silver One and SSR Mining agreed to extend the option end date and, in consideration of which, the company agreed to issue 250 000 common shares to SSR Mining. The issuance of the shares is subject to TSX-V acceptance and will be subject to restrictions on resale for a period of four months from the date of issue.