Zacatecas Silver Closes US$60 Million Acquisition Of Esperanza Gold Project
Zacatecas Silver (TSXV: ZAC) announced on Tuesday the acquisition of the Esperanza Gold Project, located in Morelos State, Mexico, from Minas De Oro Nacional, a subsidiary of Alamos Gold (TSX: AGI). The transaction is reportedly worth US$60 million.
According to the terms of the transaction, the initial payment will consist of US$5 million in cash and 12.14 million common shares priced at US$10 million. The remaining payments are tied to key milestones: US$5 million after the approval of the environmental impact assessment report, US$14 million after the completion of a feasibility study on the property, and US$20 million after the start of the commercial production.
The firm said it satisfied the initial payment with the net proceeds generated from the recently closed private placement amounting to US$19.15 million.
Half of the remaining payments can be satisfied through share issuance as long as Alamos won’t hold more than 19.99% equity in Zacatecas. In addition, the firm is also earmarking a separate US$7.5 million for expenditures to advance the Esperanza Gold Project over the next three years.
“With the transaction for Esperanza now closed, we also welcome Alamos Gold as the cornerstone shareholder of Zacatecas and thank them for their collaboration while executing this transaction,” said CEO Bryan Slusarchuk.
In the last resource estimate, the property holds 1,084,000 gold ounces and 8,936,000 silver ounces in the measured and indicated category, and 18,000 gold ounces and 347,000 silver ounces in the inferred category.
Zacatecas Silver last traded at $1.10 on the TSX Venture.
Information for this briefing was found via Sedar and Zacatecas Silver. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
