Impact Silver Acquires Consolidated Zinc’s Plomosas Project
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Impact Silver Acquires Consolidated Zinc’s Plomosas Project

Photo by:   Albert Hyseni
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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Tue, 04/04/2023 - 17:41


Canada-based silver producer Impact Silver announced that it has completed a Share Purchase and Sale Agreement with Australia-based Consolidated Zinc (CZL), acquiring the latter’s shares of Minera Latin America Zinc, which owns the Plomosas zinc-silver-lead project located in Chihuahua.

According to the agreement, the total purchase price stands at US$6 million, consisting of US$3 million in cash and the remaining in the form of about 11.44 million of shares to be issued. Both parties also agreed to make post-closing adjustments based on changes in working capital. Contractual restrictions have been placed on 75% of CZL’s shares, so the company will not be immediately able to sell or transfer them. Instead, the shares will be released from these restrictions in three sets of 25%. This will happen every six months, over a period of 18 months from the date of the closing of the acquisition.

The remaining 25% of the shares will be immediately held by CZL, but will still be subject to a statutory four-month hold period from the date they are issued by Impact Silver. CZL will not be able to sell or transfer any of the shares for four months after they are issued. Impact Silver also promised a 12% net profit interest royalty on the Plomosas project’s production.

The company said the transaction will expand its production profile from one producing mine, the Royal Mines of Zacualpan silver-lead-zinc-gold district in central Mexico, to two producing projects. 

According to mineral estimations submitted by CZL to the Australia Joint Ores Reserves Committee (JORC) in 2021, the Plomosas project reported mineral resources of 215,000t grading 13.5% zinc, 6.3% lead and 34.0g/t silver and 772,000t grading 13.1% zinc, 3.0% lead and 19.0g/t silver (inferred), at a 3% zinc. “We are thrilled to have completed this transformative acquisition that provides Impact with production in a second mining district, bringing with it both production growth and exploration upside to the Company going forward. Plomosas is a unique and fully permitted operation built on a large mineral system with global tier-one historic grades at 13%+ zinc providing exceptional potential to both upgrade and expand its current level of operations,” says Frederick Davidson, Chair and CEO, Impact Silver. 

Impact Silver also plans to conduct an aggressive drilling program in 2023 to both infill the Plomosas project’s resources and test extensions of known mineralization. 

Photo by:   Albert Hyseni

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