Aftermath Silver (TSX-V:AAG) Ltd said it has completed its acquisition of the Challacollo silver-gold project in Chile.
The deal, first announced in November 2019 and updated in April 2021, saw Aftermath acquire all of the issued and outstanding equity rights of Minera Mandalay Challacollo Limitada from Mandalay Resources Corporation (MRC) and Mandalay Resources SPA.
The company made the final payment of C$3 million to MRC using $1 million in cash, 6.1 million newly issued common shares at a price of C$0.245 and a promissory note for C$500,000. The note is repayable upon the completion of a debt or equity financing with gross proceeds of at least C$1 million or on December 31, 2022, whichever is earlier.
"We're excited to finally own 100% of the Challacollo silver-gold project, and to begin to explore its exploration potential once all of the required permits are in place,” Aftermath CEO Ralph Rushton said in a statement.
READ: Aftermath Silver welcomes latest drill assays from Berenguela silver-copper-manganese project in Peru
“In December 2020 we published a NI 43-101 mineral resource estimate for Challacollo which will form the basis of our future work program. The project benefits from excellent infrastructure and easy access from the Pan American highway," the Aftermath CEO added.
Challacollo is a low-sulfidation epithermal silver-gold system located in Northern Chile, 130 kilometers (km) southeast of the major port city of Iquique and 50 km south of the town of Pica.
Aftermath Silver is a Canadian junior exploration company focused on silver, and aims to deliver shareholder value through the discovery, acquisition and development of quality silver projects in stable jurisdictions.
The company has developed a pipeline of projects at various stages of advancement.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel