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- Silver Mines (SVL) has completed the sale of its Webbs and Conrad Silver Projects to Thomson Resources (TMZ)
- Thomson Resources paid a consideration of $1.069 million cash, 70 million ordinary shares and 50 million options for the acquisition
- Thomson Resources will now begin calculating new JORC-2012 resource estimates for the projects, in preparation for exploration
- Silver Mines is down 2.38 per cent and trading at 20 cents per share
- Thomson Resources is up 1.74 per cent and trading at 12 cents per share
Silver Mines (SVL) has completed the sale of its Webbs and Conrad Silver Projects to Thomson Resources (TMZ).
The Webbs and Conrad Silver Projects are both high grade silver-polymetallic deposits, located in northern New South Wales. The Webbs Project is located 65 kilometres from Inverell, while the Conrad Project is south-west of the Webbs deposit and 25 kilometres from Inverell.
In return for acquisition of the projects, Thomson Resources paid Silver Mines with a total consideration of $1.069 million, 70 million ordinary shares, and 50 million options.
$800,00 of the cash component was a non-refundable payment, consisting of $50,000 for the signing of the initial term sheet, and $750,000 for the signing of the binding agreements. The remaining $269,000 was a payment equivalent to the cash rehabilitation bonds in place at the time, and the replacement of any non-cash rehabilitation bonds.
The 70 million fully paid, ordinary shares in Thomson Resources were issued in two tranches, with 35 million of them issued in the first tranche. The other 35 million shares were issued in the second tranche, with a six-month voluntary escrow.
The 50 million options in Thomson Resources were issued with a six-month vesting date, an exercise price of 12.4 cents per option, and an expiry date three years from the date of issue.
The payment and issue of all this consideration was subject to approval from Thomson Resources’ shareholders. This approval was obtained at an Extraordinary General Meeting on March 29, 2021.
Thomson Resources’ Executive Chairman, David Williams, commented on the deal.
“The completion of the transaction is a great success for the company and its shareholders,” he said.
“With the transaction complete, Thomson can now turn its attention to calculating new JORC 2012 resource estimates for these projects, and importantly the integration of the projects into the larger Hub and Spoke Strategy as the company builds towards our target of 100 million ounces of silver equivalents within our centralised processing hub,” he added.
Silver Mines is down 2.38 per cent, trading at 20 cents per share at 3:18 pm AEDT.
Thomson Resources is up 1.74 per cent, trading at 12 cents per share at 3:11 pm AEDT.
