Defiance Silver To Acquire Green Earth Metals

Defiance Silver announced it entered into a non-binding letter of intent to acquire Green Earth Metals (GEMS), a private company with a portfolio of assets in Mexico. The company considers this move as part of its strategy of acquiring and developing top-tier mining projects in Mexico. 

GEMS is a Canada-based private company that holds rights to three drill-permitted copper-gold-silver-molybdenum projects in the Sonoran Desert porphyry copper belt, covering a total of 6,795ha. These projects, named Victoria, Espiritu, and Los Ocotes, are located near Alamos Gold's operating Mulatos Mine and other significant mining operations, including Grupo Mexico’s Cananea and La Caridad copper mines.

According to Chris Wright, Chair and CEO, Defiance Silver, this acquisition aligns with the company's strategy of acquiring and advancing top-tier mining projects in Mexico, to develop assets for future gold, silver, and copper mining. “GEMS’ team consists of seasoned mine financiers and global mineral explorers, and we are pleased to welcome them as shareholders. Securing this portfolio of drill-ready copper-gold-silver projects in Sonora represents a major step forward for Defiance Silver. This transaction strengthens Defiance Silver's asset base, enhances its exploration potential, and reinforces our commitment to unlocking value for shareholders,” he added.

Under the terms of the letter of intent (LOI), Defiance Silver proposes to issue around 4.9 million common shares to GEMS shareholders at an exchange ratio of 1 Defiance Share for every 4.52 GEMS Shares, representing a total purchase price of C$1.2 million (US$877,743. Additionally, Defiance Silver agreed to invest C$150,000 in GEMS through an unsecured convertible debenture.

The completion of the transaction is subject to several customary conditions, including satisfactory due diligence by Defiance Silver on GEMS, the execution of a mutually acceptable definitive agreement, GEMS shareholders tendering at least 90% of their shares, no material adverse change occurring, and the receipt of all necessary corporate and regulatory approvals, including the approval of the TSX Venture Exchange (TSXV). The transaction is expected to be completed within approximately 75 days following the execution of the definitive agreement. Upon closing, GEMS will become a wholly-owned subsidiary of Defiance Silver.