Golden Arrow Resources Corp (CVE:GRG) has completed its game-changing deal with Silver Standard Resources (TSE:SSO, NASDAQ:SSRI) and formed a joint venture called Puna Operations Inc.
Golden Arrow shares are up over 7.5% on Thursday in Toronto, to stand at 71 cents.
Puna combines the firm's Chinchillas project with Silver Standard's producing Pirquitas operation.
The latter will be the operator of the combined assets in the new joint venture, holding 75%, while Golden Arrow will have 25%.
Joseph Grosso, executive chairman chief executive officer of Golden Arrow, said: "We are looking forward to play any role that best supports our partnership in the merged assets."
Grosso has said the combination creates the eighth largest silver mine in the world with an 8-year mine life and output of 8.4 million silver equivalent ounces per year.
Golden Arrow might have been looking at years of financing and development to get its Chinchillas silver, lead , zinc site into production and throwing off cash, he said in April.
But with the combination, this has been short-circuited, he suggested.
Subject to the permitting process, construction at Chinchillas is expected to begin during the third quarter this year with ore delivery to the Pirquitas mill expected in the second half of 2018.
"The permitting process continues to advance with positive support from the local communities and government authorities," Golden Arrow said.
The Chinchillas environmental and social impact assessment has been submitted to the Argentine regulatory authorities, and is in consultation.
Work is in progress with local communities on social programs and understanding of the Chinchillas project as it advances to production, the group added.