GR Silver Mining Ltd (CVE:GRSL) (OTCQB:GRSLF) (FRA:GPE) announced that it has signed a definitive agreement to acquire Marlin Gold Mining Ltd from Mako Mining Corp (CVE:MKO) (OTCQX:MAKOF).
GR Silver said it will pay C$50,000 to acquire Marlin Gold, which owns, amongst other assets, Oro Gold de Mexico , S.A. de C.V. (Oro Gold), a Mexican company that owns the La Trinidad mine facilities that is currently being decommissioned, as well as control over 100% of nine concessions totaling 104,094.5 hectares located adjacent to GR Silver's existing portfolio of properties.
“We are pleased to enter into the agreement with Mako for the acquisition of these properties. This acquisition will strengthen our position in this region and is consistent with our strategy of controlling 100% of what we believe are the most important silver and gold assets in the Rosario Mining District of Sinaloa, Mexico,” GR Silver Mining CEO Marcio Fonseca said in a statement.
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He added: “GR Silver is the first company to achieve control of all these assets and unlock the opportunity for exploration potential and discoveries, towards developing the next generation of silver and gold mines.”
“This acquisition supports our goal of delivering significant shareholder value through new discoveries.”
GR Silver noted that the concessions being acquired host a number of known silver gold showings, and porphyry igneous intrusions that are of strong exploration interest to the company for future drilling.
In addition to the cash payment, Oro Gold will grant Mako a 1% net smelter return (NSR) royalty on the concessions owned by Oro Gold, although GR Silver and/or Oro Gold will be granted the right to purchase the NSR at any time upon making a one-time payment of US$2 million.
Mako, though, will be responsible for and pay all costs related to the closure plan activities at the La Trinidad mine and all other matters that may be required to obtain the closure plan certification.
The Trinidad Mine operated from 2014 until 2019, and was considered to be one of the highest-grade open-pit heap-leach gold mines in Mexico during this period, according to the company.
The companies expect the transaction to close by March 31, 2021, at which time GR Silver said it will control the majority of the gold and silver-rich targets in the Rosario Mining District.
Contact Sean at sean@proactiveinvestors.com