Merger and acquisition (M&A) activity continued apace for resources companies on the Australian Securities Exchange (ASX) over the last week, including James Bay Minerals (ASX:JBY).
The company has entered a binding agreement to acquire a whole stake in the Shafter Silver Project in Presidio County, Texas, strategically placing the company in the eastern extension of the Sierra Madre Belt across from the Mexican border.
James Bay will pay a cash payment of US$9.5 million on completion of the sale, along with another US$8.5 million to be paid in two installments 12 months from the agreement date and again another 12 months later.
Existing infrastructure at the mine and processing facility totals up to an estimated value of $150 million, holding a total resource estimate of 1.88 million tonnes @ 289 grams per tonne for 17.57 million ounces of silver.
The acquisition has been funded by a recent placement, raising $30 million and supported by offshore and domestic institutions through the issue of 46.15 million shares at an issue price of $0.65 per share.
Executive Chairman Matthew Hayes describes the acquisition as a “rare opportunity” to earn into a partially permitted silver asset that holds substantial infrastructure and a deep production history.
“With historic production grades comparable to world-class Mexican silver mines, this ‘Mexican-style silver on American soil’ acquisition compliments James Bay Minerals’ high grade Independence Gold Project in Nevada,” Hayes says.
James Bay intends to undergo a staged exploration program to deliver the project’s maiden resource estimate following a comprehensive review of historical data, surface mapping, geochemical sampling, and infill drilling.
The company will commence surface mapping and geochemical sampling next month for drill testing to begin in late 2025.
Pantera smacks lithium to EnergyX
Pantera Lithium (ASX:PFE) has completed the sale of its Smackover Project located in Southwest Arkansas to Energy Exploration Technologies (EnergyX), returning $40 million in value.
The company will receive an initial $2 million cash payment, as well as 2.34 million shares in EnergyX, valued at $34 million.
Pantera will also obtain another $2 million, nine months from the sale, and another $2 million 18 months on.
CEO Barnaby Egerton-Warburton says the completion of the sale represents a defining moment for the company.
“With this transaction behind us, we have the balance sheet strength and strategic flexibility to pursue the next chapter of growth,” Egerton-Warburton says.
“The US critical minerals sector is entering an exciting phase, and with our established presence in Arkansas and strong relationships on the ground, Pantera is exceptionally well positioned to capture opportunities that can deliver long-term value.”
Pantera Lithium is a critical minerals explorer focused on advancing projects in the US.
Stellar sales
Stellar Resources (ASX:SRZ) has entered a term sheet to acquire a whole stake in the Granite Tor Project in northwest Tasmania
The company will pay a $35,000 cash payment to the vendor for the transfer of the tenement, as well as 6 million shares to be issued within a five day period from the payment.
Stellar will issue another 2 million shares after achieving a drill intersection of at least 2m @ 1% tin at the exploration licence.
The company will begin its exploration program at the newly acquired project with soil and stream sampling programs across the 122km2 area, east of the Mt Read Volcanic complex.
Managing Director Simon Taylor says the company is pleased to expand its exploration portfolio of tin opportunities.
“The project provides a low-cost entry point for exposure to a large area with demonstrated tin potential along with REE elements such as Cerium,” Taylor says.
“With the ongoing progression of the Heemskirk Project in Zeehan, we are comfortable expanding the Company’s footprint in the stable tier-one mining friendly jurisdiction of western Tasmania.
“While Stellar remains focused on the nearby Heemskirk Project and the delivery of the Prefeasibility Study, we look forward to progressing initial exploration activities at Granite Tor as part of our development pipeline.”
Stellar Resources is an Australian explorer focused on developing its Heemskirk Tin Project in Western Tasmania.
Write to Maddison Elliott at Mining.com.au
Images: James Bay Minerals, Pantera Lithium & Stellar Resources
