First Majestic Silver Corp. & Evrim Resources Corp. Exercise Project Option Agreements in Mexico
First Majestic Silver Corp. (NYSE: AG) and Evrim Resources Corp. recently announced that the Ermitaño and Cumobabi project option agreements in Sonora, Mexico have now been exercised and that First Majestic has completed its 100% earn-in for both projects. In connection with the exercise, First Majestic has made a US$1.5 million cash payment to Evrim and has granted to Evrim, per the original 2014 option agreements, a 2% net smelter royalty (“NSR”) in the case of the Ermitaño project and a 1.5% NSR in the case of the Cumobabi project. They also confirmed that arbitration proceedings (previously announced on April 5, 2018) between Evrim and First Majestic have been terminated. The Ermitaño property consists of 16,526 hectares of mining concessions located adjacent to the Santa Elena claims which host the producing Santa Elena Main Vein and First Majestic’s 3,000 tonne per day processing plant. The Cumobabi property consists of 22,258 hectares of mining concessions located southeast of the Ermitaño property.
Evrim’s CEO, Paddy Nicol stated, “First Majestic’s ongoing advancement of the Ermitaño West deposit will continue to create significant value for Evrim shareholders. The inferred 40.8 million silver-equivalent ounce resource is located approximately four kilometres south of First Majestic’s operating mill at the Santa Elena mine. First Majestic is in the midst of a 13,000 metre infill and expansion drilling program at Ermitaño West that is designed to extend the deposit at depth, to the west, and to test the Aitana vein. We also look forward to additional work at the Cumobabi project where drilling was completed over the past year.”
Keith Neumeyer, President and CEO of First Majestic added, “Our exploration results at the Ermitaño West project has been extremely successful over the past 18 months and provides evidence of the regional potential across our vast 101,772 hectares of mining concessions to build additional resources in close proximity to our Santa Elena operation. Ermitaño’s maiden Inferred Resource of 40.8 million silver equivalent ounces is a significant discovery that has the potential to become a new, near-term source of production.”
First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. First Majestic presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the La Parrilla Silver Mine, the San Martin Silver Mine and the Del Toro Silver Mine. Production from these mines are projected to be between 12.0 to 13.2 million silver ounces or 20.5 to 22.6 million silver equivalent ounces in 2018.
Evrim is a mineral exploration company whose goal is to participate in significant exploration discoveries supported by a sustainable business model. Evrim is well financed, has a diverse range of quality projects and a database covering substantial areas of Mexico and portions of southwestern United States. Evrim’s projects are advanced through option and joint venture agreements with industry partners to create shareholder value. Evrim’s business plan also includes royalty creation utilizing Evrim’s exploration expertise and existing projects.