GR Silver Mining Enhances Financial Position Through Marlin Gold Disposition
GR Silver Mining Enhances Financial Position
Through Marlin Gold Disposition
VANCOUVER, BC
,
April 29, 2024
/CNW/ -
GR Silver Mining Ltd.
("
GR Silver Mining
" or the
"
Company
") (TSXV: GRSL) (OTCQB: GRSLF) (FRANKFURT: GPE) – is pleased to announce that
the Company and WP Servicios Industriales S.A. de C.V. ("
WP
") have signed on
April 28, 2024
, a
definitive and binding Share Purchase Agreement (the "
Agreement
") pursuant to which WP will
acquire 100% of the issued and outstanding shares of Marlin Gold Mining Ltd. ("
Marlin
") from GR
Silver Mining. WP is a private Mexican mining company that operates newly acquired gold, silver,
lead, and copper mines and a refinery, and conducts mineral trading in
Mexico
. Marlin is a private
British Columbia
company, 100% owned by GR Silver Mining. Marlin owns, amongst other assets,
Oro Gold de
Mexico
, S.A. de C.V. ("
Oro Gold
"), a private Mexican company that owns 100% of
nine non-core concessions ("
Other Concessions
"), including the past producing
La Trinidad
mine,
located adjacent to GR Silver Mining's core Plomosas Project.
Pursuant to the Agreement, GR Silver Mining will transfer to WP all existing assets and rights, as
well as all outstanding undertakings, covenants, indemnities and obligations, of Marlin and its
subsidiaries, including
Oro Gold
, in consideration for which GR Silver Mining will receive a 0.5% NSR
Royalty on the Other Concessions owned by
Oro Gold
(as shown in Figure 1) and a 10-year first
right of refusal on any disposition of Other Concessions by WP. The transaction is expected to close
within one month.
The disposition of Marlin and its subsidiaries allows GR Silver Mining to focus on resource growth
and the potential development of the Company's core Plomosas Project (78 km
2
) (as shown in
Figure 1), including the San Marcial, Plomosas Mine, and San Juan Areas. In addition, the Company
continues to hold several non-core concessions (270 km
2
) (as shown in Figure 1)
Figure 1: GR Silver Mining Plomosas Project mining concessions, Sinaloa, Mexico. (CNW Group/GR
Silver Mining Ltd.)
CEO and Chair of GR Silver Mining, Eric Zaunscherb, commented, "We are pleased that the
Agreement with WP will allow the Company to strengthen its financial position and enhance the
Company's balance sheet, allowing it to focus on the recently announced bulk sampling test mining
program (
news release
dated
March 4
), as well as position it to resume resource drilling in the San
Marcial area. The Agreement eliminates most of the Company's working capital deficit without
diminishing its resource inventory. GR Silver Mining's geological team has done an excellent job
growing the Plomosas Project resource estimate significantly and cost effectively. The team has
demonstrated the exploration model's efficacy with an exceptional hit rate, and we continue to be
excited by the project's potential for further resource growth." José Sierra, WP's Mining Division
CEO, added, "With the closing of this transaction, WP will be operating in proximity to GR Silver's
Plomosas Project, and we look forward to potential cooperation with GR Silver in the region."
As outlined in Tables 1 and 2, the Plomosas Project, including the San Marcial – Plomosas Mine -
San Juan
/
La Colorada
areas, hosts 55 million ounces of silver or 85 million ounces of silver
equivalent in the Indicated category, and 22 million ounces silver or 45 million ounces of silver
equivalent in the Inferred category. The full technical report dated
May 3rd, 2023
, with an effective
date of
March 15th, 2023
, is entitled "Technical Report and Mineral Resource Update for the
Plomosas Project". The report was prepared for GR Silver Mining Ltd. by Dr.
Gilles Arseneau
,
P.Geo. of ARSENEAU Consulting Services Inc. and can be found under the Company issuer profile
at
SEDAR+
.
In management's view, the San Marcial area represents an important focus for exploration given its
silver-dominant mineralization (46 million ounces of silver in the Indicated Category and 14 million
ounces of silver in the Inferred category), scalability, significant widths, and shallow depths (Figures
2 and 3). Simultaneously, management intends to advance technical studies and permitting for San
Marcial's potential development.
Plomosas Project (CNW Group/GR Silver Mining Ltd.)
Figure 2: San Marcial Area Geology. Note the Ag anomalies along the target contact to the
southeast. (CNW Group/GR Silver Mining Ltd.)
Figure 3: San Marcial Longitudinal Section C-C’, View Southwest (CNW Group/GR Silver Mining
Ltd.)
Qualified Person
The Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects
for this news release is Marcio Fonseca, P. Geo., President & COO for GR Silver Mining, who has
reviewed and approved its contents.
About GR Silver Mining Ltd
.
GR Silver Mining is a Canadian-based,
Mexico
-focused junior mineral exploration company engaged
in cost effective silver-gold resource expansion on its 100%-owned assets, located on the eastern
edge of the Rosario Mining District, in the southeast of Sinaloa State,
Mexico
. GR Silver Mining
controls 100% of the former Plomosas underground mine within the Plomosas Project, which
includes the integrated San Marcial Area. In conjunction with a portfolio of early to advanced stage
exploration targets, the Company holds 78 km
2
of highly prospective core concessions and an
additional 270 km
2
of non-core concessions.
GR Silver Mining Ltd.
Eric Zaunscherb, Chair & CEO
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking statements" within the meaning of applicable
Canadian securities legislation and information that are based on the beliefs of management and
reflect the Company's current expectations. When used in this press release, the words "estimate",
"project", "belief", "anticipate", "intend", "expect", "plan", "predict", "may" or "should" and the
negative of these words or such variations thereon or comparable terminology are intended to
identify forward-looking statements and information. Such statements and information reflect
the current view of the Company. Risks and uncertainties may cause actual results to differ
materially from those contemplated in those forward-looking statements and information. By their
nature, forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, or other future events,
to be materially different from any future results, performance or achievements expressed or
implied by such forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy
or accuracy of this press release.
SOURCE
GR Silver Mining Ltd.
View original content to download multimedia:
http://www.newswire.ca/en/releases/archive/April2024/29/c0644.html
%SEDAR: 00040149E
For further information:
Eric Zaunscherb, Telephone: +1.647.293.8457, Email:
CO: GR Silver Mining Ltd.
CNW 09:47e 29-APR-24