Orex Minerals Inc. Completes Sale of Coneto Silver-Gold Project
Orex Minerals Inc. (TSXV: REX) is excited to share its latest business move, the sale of the Coneto Silver-Gold Project to Silver Viper Minerals Corp. This transaction aligns with Orex's long-term strategy to optimize its asset portfolio and increase shareholder value.
Transaction Overview
Under the terms of the binding agreement, Silver Viper will acquire the Coneto Silver-Gold Project through an all-share transaction, resulting in total ownership of the project. The deal specifies that Orex will sell its 38.79% stake, while Fresnillo's 61.21% ownership will also be transferred.
Transaction Details
Silver Viper will issue 26,250,000 common shares at a deemed price of CAD$0.80 per share. This transaction values the Coneto Project at roughly USD$15 million (CAD$21 million), which reflects the potential for future mineral exploration and development. Following the deal's closure, Fresnillo will retain approximately 17% ownership in Silver Viper, while Orex will keep about 11%.
Future Commitments
The agreement also includes anti-dilution rights for Fresnillo, ensuring ongoing involvement in the project's future prospects. A technical committee will be established to oversee the project's advancement.
Closing Considerations
The closing of this transaction is subject to customary conditions, including satisfactory due diligence and regulatory approvals from the TSX Venture Exchange. No finders fee will be payable by Orex for this transaction, and the parties hope to complete the acquisition by early 2026.
Management Insights
Orex's President and CEO, John Eren, commented on the sale, emphasizing the company's commitment to maximizing shareholder value by monetizing its interest in the Coneto Project. Eren expressed confidence in Silver Viper's capability to advance the project effectively, thus benefiting all parties involved.
The Coneto Silver-Gold Project
The Coneto Project is located within the historic Coneto Mining District, which is one of Mexico's oldest and richest silver-gold regions. This district is renowned for significant deposits and includes notable mining camps like Fresnillo, Guanajuato, and Zacatecas, alongside development projects such as La Preciosa and La Pitarrilla.
This extensive project covers 4,995 hectares and has been actively explored, with over 40 known epithermal quartz veins mapped within its boundaries. Some of these veins exceed 20 meters in width, showcasing significant mineral potential.
About Orex Minerals Inc.
Orex Minerals Inc. is a dynamic exploration company focused on precious and base metals. With projects in Mexico and Canada, Orex boasts a strong portfolio that includes the Sandra Silver-Gold Project and the Jumping Josephine Gold Project. The firm is dedicated to advancing these projects through strategic development and partnerships.
Conclusion
This transaction marks a critical milestone in Orex's business strategy, enabling the company to focus on its core assets and future opportunities. By selling the Coneto Project to Silver Viper, Orex enhances its shareholder value while contributing to the growth of the silver-gold sector.
Frequently Asked Questions
What is the Coneto Silver-Gold Project?
The Coneto Project is a significant silver-gold mining project located in the historic Coneto Mining District of Mexico, known for its rich mineral deposits.
Who is Silver Viper Minerals?
Silver Viper Minerals is a mining company that focuses on exploring and developing precious metal projects, including its recent acquisition of the Coneto Silver-Gold Project.
What will Orex do with the proceeds from the sale?
Orex plans to reinvest the proceeds from the sale into its existing projects and further strategic development to enhance shareholder value.
When is the expected closing date of the transaction?
The closing of the transaction is anticipated no later than early 2026, pending the completion of customary conditions and approvals.
Who is involved in the management of Orex Minerals?
The management team, including President and CEO John Eren, is committed to advancing the company's projects and ensuring long-term growth and profitability.
