Silver Hammer Mining announces that it has entered into a definitive share purchase agreement to acquire a 100% interest in the Shafter silver deposit, a previously producing high-grade silver mine located in Presidio County in Southwest Texas, from Aurcana Silver Corporation.
The consideration to be paid by Silver Hammer for the Shafter Project includes cash of US$800,000, certain contingent payments, and for the settlement of existing debt, the issuance of $4,000,000 in secured convertible debentures and 8,000,000 units.
Highlights of the Shafter Project and Transaction are,
1: All material operational permits remain in place at the past-producing high-grade silver mine, which is located in western Texas, USA.
2: Past producer most recently in production from 2012-13 when operated by Aurcana.
3: Approximately US$50 million was spent historically by Aurcana; in addition, Aurcana purchased the Shafter Project in 2008 for US$25 million. An estimated US$160 million has been invested in the property since the discovery of the deposit in the late 1800’s.
“The acquisition of the high-grade silver Shafter complex and permitted mine is a transformational point in Silver Hammer’s transition and goal to become North America’s next silver producer. Shafter contains an established mineral resource of approximately 10.8 million ounces of silver in the measured and indicated category and an additional inferred silver resource of approximately 6.3 million ounces.
To ensure the project is advanced towards the development and production stages, Silver Hammer has attracted key senior level technical geological and mining advisors including previous VP Exploration and VP/COO Mining experts that held executive roles with Hudbay Minerals, Coeur Mining, Silver Standard, Centerra, Mag Silver, Probe Mines, Hecla, and Royal Oak Mines,” commented Peter A. Ball, President and CEO of Silver Hammer Mining.
“In addition to containing a significant silver resource, the Shafter Project is located in a politically safe jurisdiction in Texas, USA, is located adjacent to a paved highway with significant infrastructure including power grid through the middle of the Project, full control of water rights, a local work force and supportive community” Peter adds.