Silver Mines (ASX:SVL) has completed the acquisition of two private royalties over the Bowdens Silver Project for $26 million.
The company paid $18 million in cash and issued $8 million in shares at $0.145 per share to extinguish the royalty interests over exploration licence EL5920. The transactions remove future royalty obligations and increase Silver Mines’ direct exposure to the project’s economic benefits.
Silver Mines acquired a 2% net smelter royalty from Royalco Resources, a subsidiary of Fitzroy River (ASX:FZR), for $17.5 million comprising $10 million cash and $7.5 million in shares. The royalty reduces to 1% after the first US$5 million of revenue.
The company also purchased 100% of Asia Metals 4 for $8.5 million, comprising $8 million cash and $500,000 in shares. Asia Metals owns a 1% gross revenue royalty that commences after the first 20 million ounces (Moz) of silver production.
Silver Mines issued 55.17 million shares at $0.145 per share to complete both transactions.
Managing Director Jo Battershill says the completion represents a significant milestone for Bowdens and simplifies the project’s commercial structure.
“This completes an important piece of the project’s commercial consolidation and gives Silver Mines greater direct exposure to the future production and economic benefits of the Bowdens Project,” Battershill says.
The Bowdens Silver Project sits 26km east of Mudgee in central New South Wales and covers 2,115 km², with Silver Mines describing it as “Australia’s largest undeveloped silver deposit”.
The project faces an upcoming NSW Independent Planning Commission public hearing as part of the development approval process.
“We have a clear pathway ahead and remain focused on progressing the Bowdens project through its key approvals and development milestones,” Battershill says.
The company confirms all completion conditions have been satisfied for both acquisitions.
Silver Mines is focused on acquiring, exploring, and developing silver assets.
Write to Paula Fabe at Mining.com.au
Main image: Silver Mines
