Aftermath Silver (TSXV: AAG; US-OTC: AAGFF) has signed an agreement with SSR Mining (TSX: SSRM; NASDAQ: SSRM) to purchase 100% of the Berenguela silver-copper project in Peru, about 204 km from Arequipa.
Under the deal, Aftermath Silver will purchase all of SSR Mining’s shares in the Peruvian holding company that owns the asset, Sociedad Minera Berenguela S.A., for US$13 million in cash, $3 million in Aftermath common shares and a net smelter return royalty (NSR) on all mineral production from the mine.
The sliding-scale NSR consists of a 1% NSR on all mineral production when the silver price is under US$25 per oz. and a 1.25% NSR on all mineral production when the silver price is over US$25 per oz. and the copper price is above US$2 per pound.
The closing of the acquisition is subject to SSR Mining re-acquiring a 100% interest in Sociedad Minera Berenguela from the project’s previous operator, Valor Resources (ASX: VAL).
Berenguela is an epithermal polymetallic carbon replacement deposit located in Puno, about 50 km from Juliaca. The project has a historic resource of 98 million oz. of silver and 624 million lbs. of copper.
Elsewhere in Peru, Aftermath Silver has an option to acquire 20% of the Cachinal silver-gold project from SSR Mining. The junior currently owns 80% of the project, about 170 km from Taltal.
Aftermath Silver also is earning a 100% stake in the Challacollo silver-gold project, about 130 km south of the port city of Iquique, in Chile, from Mandalay Resources (TSX: MND; US-OTC: MNDJF).
At press time in Toronto, Aftermath Silver was trading at 84¢ per share within a 52-week trading range of 9¢ and $1.07.
The company has around 126 million common shares outstanding for a $106.2-million market capitalization.
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