GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GLYXF) told investors it has now made its second option payment under the deal struck two years ago to acquire the San Marcial project in Sinaloa state, Mexico.
The payment includes issuing 750,000 shares to the optionor, which are subject to a hold period until September 2 this year.
READ: GR Silver Mining says initial high grade drill results from the Plomosas mine area underscore Mexico project's potential
As announced in April, 2018, GR Silver - which was then Goldplay Exploration - will pay SSR Mining over three years C$2,575,000 in cash, issue to SSR Mining 3.5 million shares, and incur $3million in exploration expenditures on the project.
San Marcial is a near-surface, high-grade silver-lead-zinc project with potential for an open-pit mine.
GR Silver Mining is currently expanding its resource estimate, completed in March last year, which showed 36 million ounces (Moz)of silver equivalent in the higher confidence indicated category and over 11 Moz of silver equivalent in inferred. The firm is the first to conduct exploration at San Marcial in more than 10 years.
GR Silver is also consolidating assets in the eastern edge of the well-known Rosario mining district in Mexico, where it says it now controls the most attractive ground. The main assets are the Plomosas silver project, which hosts a former producing mine, and the San Marcial project, which lies just 5 kilometres (km) away.
On April 23, the group reported drill assays from Plomosas, which showed the potential to define further resources. Included was an intersection of 1.7 metres (m) at 26.9 grams per ton (g/t) gold 44 g/t silver and 3m at 11.9 g/t gold and 22 g/t silver. It said also unearthed was 13.6 metres at 15.5% zinc, 15.7% lead, 1.9 g/t gold and 65 g/t silver.
Shares In Toronto nudged up 1.7% to stand at C$0.30 each.
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Contact the author at giles@proactiveinvestors.com