- Reyna Silver (RSLV) has signed an agreement to acquire a 100 per cent stake in the La Reyna project in the state of Chihuahua, Mexico
- The purchase will be made through the acquisition of Exploradora La Reyna SA de CV, which currently holds the option to acquire the project
- As consideration, Reyna Silver will pay approximately C$1.73 million to the vendors, who will retain a 2.5 net smelter royalty on the project
- The royalty may be purchased by the company by making a $664,000 payment for each 0.5 per cent
- Reyna Silver (RSLV) is currently up 7.69 per cent to $0.98 per share at 1:38pm EDT
Reyna Silver (RSLV) has signed an agreement to acquire a 100 per cent stake in the La Reyna project in Mexico.
Located 90 kilometres from the company’s flagship Guigui Project, the property encompasses two former high-grade silver mines, La Reyna and La Princesa, and covers a total land package of 300 hectares.
While the La Reyna Project has been the subject of limited exploration work, a 2002 report by the Mexican Geological Service noted that the most recent production work in the region occurred in the 1970s and 1980s, generating 30,000 tonnes of ore at an average grade of 300 grams per tonne of silver.
The acquisition of the project will be made through Reyna’s purchase of Exploradora La Reyna SA de CV, a Mexican company which currently holds an option to acquire 100 per cent of the La Reyna Project.
Under the terms of the deal, Reyna will acquire Exploradora La Reyna by issuing a total of C$1.73 million in cash to the vendors over a four-year period.
The vendors will also be entitled to retain a 2.5 per cent net smelter royalty on the project, which may be acquired by Reyna at a price of roughly $664,000 for each 0.5 per cent.
Jorge Ramiro Monroy, CEO of Reyna Silver, said the acquisition offers a foothold in another major mining district in Chihuahua.
“We look forward to seeking new mineralised shoots along the principal four-kilometre vein that crosses the property.
“While Guigui and Batopilas remain the company’s main focus, the structure of this acquisition brings Reyna shareholders additional exposure to a high-grade silver project and additional optionality to rising silver prices,” he added.
Reyna Silver (RSLV) is currently up 7.69 per cent and is trading at $0.98 per share at 1:38pm EDT.