Silver Viper Minerals Announces Acquisition of Coneto Project
Silver Viper Minerals Corp. has recently reached a binding agreement to acquire the Coneto Silver-Gold Project. This acquisition marks a significant milestone in the company's growth strategy, enabling it to expand its interests in the precious metals landscape of Mexico.
Details of the Acquisition
The agreement includes the purchase of a total of 100% equity of the Coneto Project, with interests held by both Fresnillo plc and Orex Minerals Inc. Notably, Fresnillo holds a 61.21% stake while Orex has 38.79%. This acquisition is structured as a share transaction, with an estimated value of the project set at US$15 million (approximately C$21 million).
Transaction Highlights
Silver Viper will issue VIPR Shares at a pricing of C$0.80 per share to satisfy the total purchase price. This is being determined based on the prevailing exchange rate on the closing date of the acquisition.
After the transaction is completed, Fresnillo and Orex are expected to hold significant shares in Silver Viper, ensuring ongoing participation in the project's future.
Investor Rights and Conditions
In conjunction with the acquisition, Fresnillo will benefit from anti-dilution provisions to protect its interests. The agreement is contingent upon customary due diligence, obtaining necessary shareholder approvals, and meeting regulatory requirements.
Exploring the Coneto Project
The Coneto Silver-Gold Project is located within one of Mexico's oldest and historically significant mining areas. The project covers nearly 5,000 hectares of promising mineral concessions with over 40 known epithermal quartz veins that showcase ample silver and gold mineralization.
Mining in this district has a rich legacy spanning over 400 years, and despite its long history, the project remains underexplored at greater depths. Historical data indicate the presence of high-grade zones beneath the water table, providing exciting prospects for Advanced exploration and drilling operations.
Infrastructure and Local Engagement
Coneto benefits from superb infrastructure, including connection to national power grids and access to highways, which are crucial for advancing development. The nearby town provides skilled labor, enhancing the project’s potential for sustainable growth.
Management's Perspective
Silver Viper's management is enthusiastic about this acquisition. Steve Cope, the President and CEO, expressed that the Coneto acquisition aligns perfectly with their long-term goals of growth and sustainability in the mining sector. He highlighted the potential for discovery that the Coneto Project holds, which complements Silver Viper's existing assets.
Changes in Management
In addition to the acquisition news, Silver Viper has announced changes to its board. Adam Cegielski has been appointed as the new Chairman of the board, bringing a plethora of experience in capital markets and public company leadership to the role.
Furthermore, Ruben Alvidrez is set to join the board, contributing his extensive expertise gained from years in the financial and mining sectors, further strengthening the leadership team's capabilities.
About Silver Viper Minerals
Silver Viper Minerals Corp. focuses on the exploration and development of precious metal assets in Mexico. With enhanced capacity from the newly acquired Coneto Project, the company solidifies its standing in Mexico’s mining industry landscape by positioning itself for future growth.
Frequently Asked Questions
What is the significance of acquiring the Coneto Project?
The Coneto Project enhances Silver Viper's portfolio, providing access to a district-scale opportunity in a prolific silver-gold mining region.
What are the financial terms of the acquisition?
Silver Viper will pay a purchase price valued at US$15 million through the issuance of VIPR Shares valued at C$0.80 each.
Who will own shares in Silver Viper post-acquisition?
Fresnillo and Orex will hold approximately 17% and 11% of the issued shares, respectively, post-closing.
How does this acquisition align with Silver Viper's strategy?
The acquisition supports Silver Viper's goal of growth in the precious metals sector, leveraging existing infrastructure and mining expertise.
What opportunities does the Coneto Project present?
The project boasts rich mineralization and is underexplored at depth, suggesting significant potential for future discoveries and developments.
