Silver Mines (ASX:SVL) is strategically expanding its operations in San Bernardino County, California, through the acquisition of California Silver’s Calico North Project and a binding agreement concerning Lustrum Gold’s Kramer Hills Project. The company will pay US$600,000 in cash and issue 39 million shares for the Calico North Project, pending necessary approvals.
Furthermore, Silver Mines can earn up to an 80% interest in the Kramer Hills Project. This involves an initial outlay of US$600,000 and the allocation of 23.5 million shares held in voluntary escrow for 12 months. An initial 50% interest is secured by funding US$3.5 million in exploration and property maintenance, alongside a US$1.25 million cash payment and US$1.5 million in shares, valued using the 10-day volume-weighted average price (VWAP). The remaining 30% can be acquired by issuing an additional $2 million in shares under the same conditions.
Managing Director Jo Battershill emphasized the company’s commitment to advancing its flagship project while simultaneously assessing the geological potential of the new assets. He stated the projects align with Silver Mines’ strategy of targeting brownfield sites in safe jurisdictions with high potential and minimal balance sheet impact. The Calico North Project, with extensive silver-barite mineralization and proximity to historical mines, presents a compelling opportunity with limited exploration in the last century. The Kramer Hills Project spans 48km2 at the historical Shaherald Property, with exploration and mining activities dating back to the early 1900s.
