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Be the first with the news that moves the market- Southern Silver Exploration Corp (TSXV:SSV) is purchasing the El Sol mineral claim in Mexico
- The company is acquiring the site for C$425,000 from Monarca Minerals
- Southern Silver is able to purchase a remaining two per cent production royalty for $1.4 million at any time
- The new claim is contiguous with the company’s Cerro Las Minitas, which it is currently developing with Electrum Global Holdings LP
- Southern Silver Exploration Corp (SSV) is down 3.57 per cent, with shares trading at $0.14 and a market cap of $17.8 million
Southern Silver Exploration Corp (TSXV:SSV) is purchasing the El Sol mineral claim in Mexico, expanding its holdings in the Durango area.
The company is acquiring the site from Monarca Minerals Inc for a C$425,000. The vendor will retain two per cent royalty on any potential production at the site.
Southern Silver have the option to purchase this royalty at any time for $1.42 million.
The El Sol claim is located in Durango and is contiguous with the company’s Cerro Las Minitas mineral property.
Southern Silver operates Cerro as a joint venture with Electrum Global Holdings LP.
However, the company was quick to point out that it has not purchased El Sol though the joint venture.
El Sol is 63 hectares and is located close to four mineral deposits Southern Silver discovered on the Cerro property.
By purchasing the property, the company seems confident of the underlying mineral deposits in and around its Cerro site.
At El Sol, a drill hole from 2013 found anomalous silver lead and zinc values, similar to those projected for the Cerro site.
El Sol has also had airborne magnetic geophysics work and some soil sampling in the past.
The company has not announced any plans to explore or develop the site, thus far.
Any planned exploration could be negatively impacted by Mexico’s ongoing government mandated lockdown.
The lockdown is expected to last until April 30 and is aimed at reducing the spread of COVID-19 throughout the country.
The ongoing lockdown has caused havoc with local mining companies, who are being forced to slow and cease operations temporarily.
Southern Silver has yet to comment on the lockdown.
Southern Silver Exploration Corp (SSV) is down 3.57 per cent, with shares trading for $0.14 at 9:38am EST.
