https://www.miningweekly.com

Fortuna Silver Mines buys interest in land surrounding Mexican mine

24th January 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

Font size: - +

TORONTO (miningweekly.com) – Latin America-focused silver producer Fortuna Silver Mines’ subsidiary Compania Minera Cuzcatlan has entered into an acquisition and option agreement with Plata Pan American, a wholly owned subsidiary of Pan American Silver for the 6 254 ha Taviche Oeste Concessions immediately surrounding the San Jose mine, in Oaxaca, Mexico.

Under the agreement, Cuzcatlan would buy a 55% interest in the Taviche Oeste Concessions for $4-million. Once a production decision had been made to develop ore from the concessions, Cuzcatlan would buy the remaining 45% interest in the property for $6-million.

Plata Pan American would retain a 2.5% net-smelter royalty on ore production from the property.

"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. We will be planning an aggressive exploration programme to immediately follow up on targets that we have developed," CEO Jorge A Ganoza said.

The transaction is expected to close at the end of the month.

The company’s Toronto-listed shares declined 4.28% in value to C$4.25 apiece on Thursday.

Edited by Creamer Media Reporter

Comments

Showroom

Werner South Africa Pumps & Equipment (PTY) LTD
Werner South Africa Pumps & Equipment (PTY) LTD

For over 30 years, Werner South Africa Pumps & Equipment (PTY) LTD has been designing, manufacturing, supplying and maintaining specialist...

VISIT SHOWROOM 
AutoX
AutoX

We are dedicated to business excellence and innovation.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.213 0.248s - 106pq - 2rq
1:
1: United States
Subscribe Now
2: United States
2: