Silver One Resources Inc. (TSXV: SVE) (OTCQX: SLVRF) (FSE: BRK1) is pleased to announce it has completed the sale of its three Mexican silver exploration projects to Silverton Metals Corp. (TSX-V: SVTN) (formerly Plymouth Reality Capital Corp.). Silverton is now a Tier 2 Mining issuer under the policies of the TSX Venture Exchange. Trading in its common shares will commence on March 5, 2021.
Under the terms of the share purchase agreement dated November 16, 2020, as amended January 4, 2021 and February 1, 2021, Silverton acquired from Silver One all of the issued and outstanding shares of KCP Minerals Inc., which holds a 100% interest in three Silver Properties (Penasco Quemado, La Frazada and Pluton), in consideration of which Silverton agreed to pay to Silver One $6,000,000 as follows: (a) pay $1,250,000 in cash on closing, (b) issue 4,375,000 common shares of Silverton (the “Consideration Shares“), (c) pay $750,000 in cash eighteen months after closing, and (d) pay US$500,000 in cash twenty four months after closing.
Silverton also granted to Silver One a 1.5% net smelter return royalty on each of the Silver Properties. At the option of Silverton, Silverton may repurchase two-thirds of the Royalty (being a 1% net smelter return royalty) with a payment equal to US $500,000 for each of the Silver Properties.
The Consideration Shares issued to Silver One are subject to the Tier 2 value escrow requirements under the rules of the Exchange.
Greg Crowe, President and CEO of Silver One commented: “Silver One has been focusing on our advanced exploration assets in Nevada (Candelaria and Cherokee) and Arizona (Phoenix Silver), both recently rated by the Fraser Institute as the top two mining jurisdictions in the world. The sale of the Mexican exploration assets allows us to further concentrate our efforts on these rapidly developing projects. Silver One will also be able to maintain its interest in the Mexican properties through its significant share position in Silverton. Silverton, with completing financings in excess of $9.25 million, is in a firm position to grow the company though the continuing exploration of these quality Mexican silver projects. ”
The technical content of this news release has been reviewed and approved by Greg Crowe, P.Geo., and a Qualified Person as defined by National Instrument 43-101.
About Silver One
Silver One is focused on the exploration and development of quality silver projects.
The Company holds an option to acquire a 100%-interest in its flagship project, the past-producing Candelaria Silver Mine, Nevada. Potential reprocessing of silver from the historic leach pads at Candelaria is being investigated. Additional opportunities lie in previously identified high-grade silver intercepts down-dip and the possibility of increasing the substantive silver mineralization along-strike from the two past-producing open pits.
The Company has staked 636 lode claims and entered into a Lease/Purchase Agreement to acquire five patented claims on its Cherokee project located in Lincoln County, Nevada, host to multiple silver-copper-gold vein systems traced to date for over 12 km along-strike. The property also has potential for limestone related polymetallic plus silver and gold and/or other intrusive related systems at depth.
Silver One holds an option to acquire a 100% interest in the Silver Phoenix Project. The Silver Phoenix Project is a very high-grade native silver prospect that lies within the “Arizona Silver Belt”, immediately adjacent to the prolific copper producing area of Globe, Arizona.
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