Defiance Silver Acquires GEMS, Adds Three Projects in Sonora

Canada-based silver exploration and development company Defiance Silver completed the acquisition of Green Earth Metals (GEMS), a privately held company with a portfolio of three copper-gold-silver projects in Sonora. The company considers the projects offer untapped potential in a region with successful producing mines. 

Under the terms of the definitive agreement, Defiance acquired all outstanding shares of GEMS by issuing an aggregate of 4,954,613 Defiance common shares to GEMS shareholders. Based on a deemed price of CA$0.255 (US$0.18) per share, the total consideration for the transaction is approximately CA$1.26 million. As a result of the acquisition, GEMS is now a wholly owned subsidiary of Defiance. “This acquisition brings three copper-gold-silver projects in Sonora, one of the world’s most renowned copper-gold mining jurisdictions, into Defiance Silver’s portfolio. The GEMS team consists of seasoned mine financiers and global mineral explorers, and we are pleased to welcome them as shareholders," commented Chris Wright, Chairman and CEO, Defiance Silver.

The acquired GEMS portfolio spans 6,795.22ha in Sonora, a state that, according to government data, accounted for 75.6% of Mexico’s copper production and 25.7% of its national gold output in early 2024. The projects are located in proximity to several major active mines, including Alamos Gold’s Mulatos Mine, Grupo México’s Cananea mine, Pan American Silver’s Dolores mine, and Agnico Eagle’s Pinos Altos Mine.

Exploration Potential

Defiance Silver stated it is committed to advancing exploration on the newly acquired properties and plans to launch a comprehensive campaign, starting with a diamond drill program at the drill-ready Victoria project, for which a permit is in place. The Victoria project consists of two mineral claims totaling 1,795.22ha in the Sonoran porphyry copper belt. According to the company, geological indicators suggest porphyry-style copper-molybdenum-gold mineralization, with surface leaching that indicates the potential for enriched mineralization at depth.

The campaign will also target the other two acquired assets. The Espiritu project, which spans 2,711ha near Sahuaripa, Sonora, is described as an underexplored but large, metal-bearing hydrothermal system located in proximity to several major operating mines. The Los Ocotes project is a 2,283ha polymetallic vein asset located less than 40km from the La India and Mulatos mines and near Minera Alamos’ Santana mine.