Silver Mines Limited (ASX:SVL), an Australian exploration and development company focused on its Bowdens Silver Project, the largest undeveloped silver deposit in Australia, today announced the completion of significant royalty buy-backs for its 100% owned Bowdens Silver Project. The company’s wholly owned subsidiary, Bowdens Silver Pty Ltd, finalised transactions to acquire and extinguish two private royalties, strengthening Silver Mines’ direct exposure to the project’s future production and economic benefits. The aggregate consideration for these Royalty Buy-Backs totalled A$26 million, comprising A$18 million in cash and A$8 million in Silver Mines shares, issued at A$0.145 per share.
These completed transactions include the buy-back and extinguishment of a 2% net smelter royalty over tenement EL5920 from Royalco Resources Pty Ltd, a subsidiary of Fitzroy River Corporation (ASX:FZR). Additionally, Bowdens acquired 100% of the issued shares in Asia Metals 4 Pty Ltd, which held a 1% gross revenue royalty over the same tenement. The removal of these royalty interests simplifies the project’s commercial structure and eliminates associated future royalty obligations, thereby enhancing Silver Mines’ economic returns from Bowdens.
Silver Mines Managing Director, Jo Battershill, commented on the development, stating that the completion of the Royalty Buy-Backs represents a significant milestone for Bowdens. He highlighted that this move completes an important piece of the project’s commercial consolidation. Mr Battershill added that with the Definitive Feasibility Study completed and the project progressing through its approvals pathway, the immediate focus is on the upcoming NSW Independent Planning Commission public hearing and advancing Bowdens towards development. The company remains focused on progressing the project through its key approvals and development milestones.
