Silver Mines Ltd (ASX:SVL) (OTCMKTS:SLVMF) (FRA:SWQ) has become a substantial holder of Thomson Resources Ltd (ASX:TMZ), now holding 70 million shares for a voting power in 15.53% in the company.
The shares were part of the consideration payable for Thomson’s acquisition from Silver Mines of the Webbs and Conrad high-grade silver-polymetallic projects in northern New South Wales.
Webbs and Conrad sale
Consideration for the sale comprised of:
- A non-refundable payment of A$800,000 to Silver Mines comprising $50,000 on the signing of the initial term sheet and $750,000 on the signing of binding agreements (both paid);
- A payment equivalent to the cash rehabilitation bonds in place at completion and the replacement of any non-cash rehabilitation bonds totalling $269,000 (paid); and
- Share consideration of 70 million fully paid ordinary shares and 50 million options in Thomson Resources of which 35 million shares have been issued to Silver Mines (Tranche 1), 35 million shares issued to Silver Mines with a 6-month voluntary escrow (Tranche 2), and 50 million options issued to Silver Mines with a vesting date six months from the date of issue, an exercise price of $0.124 per option and an expiry date of three years from the date of issue.
Bowdens Silver Project
The company is focused on its flagship Bowdens Silver Project in Central West NSW, which is the largest undeveloped silver deposit in Australia.
It recently submitted a Mining Lease Application (MLA 601) for the development of the project which comprises an open-cut mine feeding a new processing plant with a conventional milling circuit and differential flotation to produce two concentrates that will be sold for smelting off-site.
Annual plant capacity is designed for 2 million tonnes with a mine life of 16.5 years.
Life of mine production is expected to be around 66 million ounces of silver, 130,000 tonnes of zinc and 95,000 tonnes of lead.