Silver Hammer Mining Corp. (CSE: HAMR), also referred to as “Silver Hammer,” has finalized a definitive share purchase agreement to acquire a complete interest in the Shafter silver deposit, a historically high-grade silver mine situated in Presidio County, Southwest Texas. The mine, which last operated between 2012 and 2013 under Aurcana Silver Corporation’s stewardship, is being procured from Aurcana in a transaction involving cash, shares, and other considerations.
In the terms of the transaction, Silver Hammer will pay $800,000 in cash, dispense 23,000,000 shares, and settle existing debt by issuing $4,000,000 in secured convertible debentures along with 8,000,000 units. Each unit will comprise a common share and ½ warrant at $0.33, valid for 2 years.
Historically, the Shafter Project has seen considerable investment. Between its discovery in the late 1800s and its last production period, an estimated $160 million has been invested. Aurcana had previously acquired the project in 2008 for $25 million.
A recent highlight for the Shafter Project is the NI 43-101 Mineral Resource technical report, dated September 15, 2023. This report underscored resources of 10.8 million ounces of silver in measured and indicated categories. Additionally, inferred resources are approximated at 6.3 million ounces of silver. This silver deposit is recognized as a carbonate replacement deposit (“CRD”), with geological attributes similar to prominent CRDs in northern Mexico.
With this strategic acquisition, Silver Hammer sees vast potential to expand the current mineral resource within the project’s boundaries. It’s noteworthy that the area hasn’t been systematically explored, and the origin of the Shafter CRD is still to be determined. Silver Hammer aims to benefit from the extensive site infrastructure, water rights, available local workforce, an existing power grid, and strong community relations.
Highlighting the acquisition’s importance, Peter A. Ball, President, and CEO of Silver Hammer Mining stated, “Acquiring the Shafter high-grade silver complex is a transformative step in Silver Hammer’s drive to become North America’s next leading silver producer.”
Press Release Source: Junior Mining Network
