Silverton Metals Corp (TSX-V:SVTN, OTCQB:SVTNF) announced its newly-appointed executive management has taken steps to further advance the company by analyzing acquisition opportunities, appointing seasoned institutional directors, outlining future exploration programs, and retaining additional service providers.
Based on market sentiment and compelling valued opportunities in battery metals, the company said it has entered into a definitive share exchange agreement to acquire all of the issued and outstanding shares of Wholesome Organic Limited (WOL). WOL owns the Peny Property comprised of fifteen mineral claims totalling 3,204 hectares in the Snow Lake district in Manitoba.
Located approximately 25 kilometres northeast of the town of Snow Lake, Peny Property is prospective for lithium pegmatite and volcanic massive sulphide (VMS) style mineralization.
READ: Silverton Metals inks letter of intent to acquire lithium properties in Manitoba
The property encompasses rocks belonging to the Churchill province and comprises metamorphic and metasedimentary rocks; predominantly Felsic and Arkosic Gniess including arkose, arenite, and quartzite-derived gneiss and migmatite belonging to the Sickle Group, Missi Group and Sickle Metamorphic Suite.
The property is located adjacent to the formally producing Osborne Lake VMS Mine previously operated by the Hudson Bay Mining and Smelting Co, where historical workers report wallrocks are intruded by coarse-grained, sheared pegmatite. While the limited historical work on the property indicates that mineralization may include copper and zinc, Silverton said it intends to refocus the asset on the exploration of lithium, which has proven successful at neighbouring sites.
Under the terms of the agreement, Vancouver-based Silverton said it will issue a total of 13,000,000 common shares at a deemed price of $0.095 per share for a total consideration of C$1,235,000 to WOL shareholders. The company anticipates it will close the transaction this month.
Silverton said it has engaged Longford Exploration Services Limited to operate the upcoming exploration program at the Peny Property. The initial preliminary exploration program consists of soil sampling, fieldwork, airborne sensing, and data compilation to further identify mineralization zones.
Silverton has also engaged Daniel Mogil to provide investor relations and corporate advisory services to assist with generating investor awareness. Mogil has been engaged for a period of one year, subject to early termination by the parties, for a monthly fee of $2,000 and issued 100,000 options exercisable for five years at a price of $0.15 per share. Other than the stock options to be granted, Mogil does not own, directly or indirectly, any securities of the company.
As the company shifts its focus to evaluate other opportunities, it announced that Peter Born has resigned as Silverton's qualified person.
CEO Lowell Kamin said: "I'm pleased to provide shareholders a status of Silverton's recent corporate changes and strategy going forward. The following changes, from management to reviewing other project potentials, are necessary steps to create shareholder value in the future."
Silverton Metals is a Canadian company focused on the exploration and development of quality silver projects. The company holds a 100% interest in three significant silver assets in Mexico – Pluton in Durango, Penasco Quemado in Sonora, and La Frazada in Nayarit.
Contact the author at susie@proactiveinvestors.com