Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Defiance Silver Corp (TSX-V: DEF) and ValOro Resources (TSX-V: VRO) have created a combined company that keeps the name Defiance Silver Corp., following a friendly merger under the Business Corporations Act of the Canadian province of British Columbia.
In a media statement, the Vancouver-based miners describe Defiance Silver Corp as “a leading diversified explorer with an advanced portfolio of Mexican silver and gold projects.”
The new firm is trading under the symbol DEF, has approximately 120.07 million common shares outstanding, of which shareholders of Defiance own 86.07% and the former shareholders of ValOro own approximately 13.92%.
From now on, the new company will be in charge of the works ValOro was advancing at its 100%-owned Tepal gold/copper project in the western Mexican state of Michoacán. The property, where ValOro has carried out aggressive exploration, resource expansion, and infill drilling programs, is comprised of five concessions that occupy some 1,400 hectares.
San Acacio deposit in Mexico. Photo by Defiance Silver.
“We are pleased with the closing of the transaction and wish to thank all the participants and shareholders. With two drill-ready projects in Mexico and recent news indicating the new Mexican government will be supportive of mining, we look forward to a dynamic and exciting 2019,” Dunham Craig, former President and CEO of ValOro, said in the media brief.
Previous to the merger, Defiance Silver was also advancing projects in the Latin American country. Its focus has been in expanding the San Acacio deposit, located in the Zacatecas Silver District of central Mexico.
“We look forward with a shared common vision to unlock further exploration potential at the San Acacio silver project and Tepal gold project. Given the rise in precious metal prices and with these two advanced projects, we believe the time is right to unlock their value to shareholders,” Peter J. Hawley, President and CEO of Defiance, said.
