Silver Mines (ASX:SVL) has signed an MOU with a private New Zealand Company to provide funding to support its growth strategy.
The strategy is focused on developing a portfolio of projects targeting silver and gold in North America and Mexico; the MOU will provide working capital to continue exploration drill high value targets in the near term.
Projects under review are at varying levels of development, ranging from early stage prospecting to small scale mining, ensuring a balanced approach and a smoothing of the risk curve.
The MOU contemplates the provision of new cornerstone investors, plus access to a broader investor network in Australia and the US who have a strong interest in precious metals, and North America as a destination to invest.
Identifying and acquiring under-valued precious metal projects in low risk jurisdictions and cost effectively adding value is a key part of SVL’s North American Strategy.
In August, SVL farmed-in to a new project in Mexico.
During the June quarter 2014, SVL completed due diligence on three new prospective precious and base metal properties in Arizona and Nevada in the U.S.
Ground geophysics and geochemical surveys planned to begin in the September quarter on these projects to better define drilling targets.
Advanced discussions are also underway with a possible partner for its Australian Webbs silver project.
Webbs is the highest grade undeveloped silver project in Australia with a resource of 11.75 million ounce at 245g/t silver.
Positive metallurgical results at Webbs indicate >90% silver recovery to doré bars.
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