Aftermath Silver (TSXV: AAG; US-OTC: AAGFF) has signed an agreement with SSR Mining (TSX: SSRM; NASDAQ: SSRM) to purchase 100% of the Berenguela silver-copper project in Peru, 204 km from Arequipa.
Under the deal, Aftermath Silver will purchase all of SSR Mining’s shares in the Peruvian holding company that owns the asset, Sociedad Minera Berenguela S.A., for $13 million in cash, $3 million in Aftermath common shares and a net smelter return royalty (NSR) on all mineral production from the mine.
The sliding-scale NSR consists of a 1% NSR on all mineral production when the silver price is under $25 per oz. and a 1.25% NSR on all mineral production when the silver price is over $25 per oz. and the copper price is above $2 per pound.
The project has a historic resource of 98 million oz. silver and 624 million lb. copper
The closing of the acquisition is subject to SSR Mining reacquiring a 100% interest in Sociedad Minera Berenguela from the project’s previous operator, Valor Resources (ASX: VAL).
Berenguela is an epithermal polymetallic carbon replacement deposit located in Puno, 50 km from Juliaca. The project has a historic resource of 98 million oz. silver and 624 million lb. copper.
Elsewhere in Peru, Aftermath Silver has an option to acquire 20% of the Cachinal silver-gold project from SSR Mining. The junior currently owns 80% of the project, 170 km from Taltal.
Aftermath Silver is also earning a 100% stake in the Challacollo silver-gold project, 130 km south of the port city of Iquique, in Chile, from Mandalay Resources (TSX: MND; US-OTC: MNDJF).
At press time in Toronto, Aftermath Silver was trading at 84¢ per share within a 52-week trading range of 9¢ and $1.07.
The company has 126 million common shares outstanding for a C$106-million market capitalization.
(Carl A. Williams – This article first appeared in The Northern Miner on October 10)
