Aftermath Silver Ltd (CVE:AAG) (OTCQB:AAGFF) said it has now completed the acquisition for C$700,000 of SSR Mining Inc's (SSR) 20% interest in the Cachinal silver project in Chile, which means it has now taken ownership of the asset.
The acquisition was announced in May 2020 but the coronavirus (COVID-19) pandemic delayed completion of the legal documentation in Chile.
"We're pleased to finalise this transaction and secure Aftermath's ownership of Cachinal. I'd like to thank our Chilean legal counsel for helping to expedite this transaction despite challenges posed by COVID protocols. We can now advance our exploration and development plans which we will be announcing shortly," said Michael Williams, executive chairman of Aftermath in a statement.
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The purchase deal covers SSR's 20% interest in Minera Cachinal S.A., which is the Chilean holding company for the Cachinal silver-gold property. The final stage of the transaction was the recent completion of the relevant Chilean documentation and registration of Aftermath's ownership of Minera Cachinal with the Chilean authorities.
Aftermath Silver now owns 100% of the shares of Minera Cachinal, minus one share which will remain held by Aftermath's Chilean legal counsel, as per Chilean business law requirements.
The Cachinal silver-gold project lies in Chile's Antofagasta Region (Region II) about 40 kilometres east of the Pan American Highway.
In September 2020, Aftermath reported a CIM (Canada) compliant resource estimate for the project, showing 16.32 million ounces of silver in the higher confidence indicated category. Of those, 15.03 million ounces were in an open pit and 1.29 million ounces were underground.
Meanwhile, indicated gold ounces came in at 21,700 ounces, using a cut-off grade of 0.13 grams per ton (g/t), while the silver ounces had a cut-off of 101 g/t. Put simply, this means any material that was below these grades was not included in the resource.
Total inferred (lower confidence) ounces from both open pit and underground were 2.48 million silver ounces and 2,610 gold ounces.
Contact the author at giles@proactiveinvestors.com