Fortuna Silver Mines Signs Acquisition and Option Pact for the Taviche Oeste Concessions in Mexico [Manufacturing Close - Up]ProQuest Information & Learning
Fortuna Silver Mines Inc. announced that Compania Minera Cuzcatlan S.A. de C.V. (subsidiary of Fortuna Silver Mines Inc.) and Plata Pan American S.A. de C.V. (subsidiary of Pan American Silver Corp.) have entered into an acquisition and option agreement for the 6,254 hectare Taviche Oeste Concessions immediately surrounding the San Jose Mine in Oaxaca, Mexico.
According to a release, Cuzcatlan will purchase a 55 percent undivided interest in the Taviche Oeste Concessions for a cash payment of US$4.0 million. Once a production decision is made to develop ore from the Taviche Oeste Concessions, Cuzcatlan will purchase the remaining 45 percent undivided interest in the property for US$6.0 million. Plata Pan American will retain a 2.5 percent net smelter royalty on ore production from this property. The transaction is expected to close January 30 th 2013.
"This is an important acquisition for our company, not only does this simplify the mineral tenure immediately surrounding our existing mine and infrastructure, but the acquisition strengthens our exploration portfolio along the trend of current production," said Jorge A. Ganoza, President and CEO. "We will be planning an aggressive exploration program to immediately follow up on targets that we have developed."
Fortuna is a growth oriented, silver and base metal producer focusing on mining opportunities in Latin America.
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