Argenta Silver has completed the acquisition of a 100% interest in the El Quevar silver project in Salta province, Argentina.
The purchase was made through the acquisition of all issued and outstanding shares of Silex Argentina for a total consideration of $3.5m (3.45bn pesos).
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In connection with the acquisition, Argenta Silver conducted a non-brokered private placement, issuing 101,801,536 common shares at C$0.15 each, raising gross proceeds of C$15.27m ($11.04m).
Frank Giustra, CEO of the Fiore Group, participated in the financing and now holds approximately 13.62% of Argenta Silver on an undiluted basis.
The company has also received unsecured, non-interest-bearing one-year term loans totalling $500,000 and C$925,000 from certain arm’s-length parties.
As part of the consideration for these loans, Argenta Silver issued 9.8 million share purchase warrants exercisable at C$0.16 per share for a period of one year.
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By GlobalDataThe acquisition of El Quevar positions Argenta Silver as a key player in the silver sector.
The El Quevar project is situated on the southern edge of the Andean Central Volcanic Zone, within the Quevar volcanic complex.
The project is known for its high-grade pure silver mineral resource and extensive existing infrastructure.
The Yaxtché deposit within the project boasts an indicated mineral resource of 45.3 million ounces (moz) of silver (Ag) at a grade of 482 grams per tonne (g/t) Ag and an inferred resource of 4.1moz at 417g/t Ag.
The project also benefits from more than 100,000m of historical drilling, excellent international road access and more than 60km of internal roads, which are expected to enhance the company’s operational capabilities.
El Quevar also includes a fully operational camp for 100 workers, valid permits, and access to power and transportation networks. These features provide substantial cost savings and facilitate quick development.
