Silver One to Sell Mexican Silver Assets Silver One Grants New Stock Options
Silver One to Sell Mexican Silver Assets
Silver One Grants New Stock Options
Vancouver, British Columbia--(Newsfile Corp. - September 28, 2020) -
Silver One Resources Inc.
(TSXV: SVE) (OTCQX: SLVRF) (FSE: BRK1)
("
Silver One
" or the "
Company
") is pleased to
announce it has entered into a letter of intent (the "
LOI
") with Plymouth Realty Capital Corp.
("
Plymouth
"), a capital pool company, to sell its Canadian subsidiary KCP Minerals Inc., which holds all
of its Mexican silver properties.
Plymouth's aim is to become a significant player in the silver space
though the acquisition and advancement of quality silver projects.
Since the Company's agreement with Silver Standard (now SSR Mining) in 2017, allowing Silver One to
acquire a 100% interest in the past-producing Candelaria silver mine in Nevada, Silver One has been
shifting its exploration efforts into the southwestern US.
Consequently our Mexican assets, originally
acquired from First Mining Gold Corp. in 2016, have become of secondary importance to the Company.
Greg Crowe, President and CEO, commented:
"The sale of our Mexican assets to Plymouth provides
excellent value to Silver One.
Since 2018, the Company has been focusing on its projects in Nevada and
more recently Arizona.
Silver One will now have a significant position in a potential Mexican growth story,
going forward into what appears to be a strong precious metals bull market.
In addition to a highly
leveraged share position in Plymouth, the company will also retain a 1.5% NSR on each of the projects,
that can be bought down to 0.5% by paying to Silver One US$ 0.5 million per property."
Terms of the Transaction
Under the terms of the LOI, Silver One has agreed to transfer to Plymouth a 100% interest in all of its
Mexican Silver Properties and, in consideration of which, Plymouth will issue $6,000,000 in cash and
shares of Plymouth as follows: (a) pay $1,000,000 in cash, and (b) issue $5,000,000 of common shares
of Plymouth (the "
Consideration Shares
") to Silver One.
The total number of Consideration Shares to
be issued to Silver One is currently anticipated to be 5,000,000 shares of Plymouth.
Plymouth will also complete a private placement financing of 10,000,000 subscription receipts at $1.00
per subscription receipt for total proceeds of $10,000,000 to fund the exploration and development of
the Mexican silver properties (the "
Offering
").
Plymouth will also change its name to Silverton Metals Corp. ("
Silverton Metals
") and list the post-Split
common shares under a new stock symbol.
The Transaction is subject to TSX Venture Exchange approval, entry into a definitive agreement by the
parties, completion of the Offering, acceptable resale restrictions and other customer conditions for the
Transaction.
New Option Grant
Silver One also announces that is has granted a total of 2,575,000 stock options to its directors, officers,
employees and consultants.
The options are exercisable at $0.70 per share, subject to Silver One's
option vesting terms and expire five years from the date of grant.
Qualified Person
The technical content of this news release has been reviewed and approved by Greg Crowe, P.Geo.,
and a Qualified Person as defined by National Instrument 43-101.
About Silver One
Silver One is focused on the exploration and development of quality silver projects.
The Company holds an option to acquire a 100%-interest in its flagship project, the past-producing
Candelaria Silver Mine, Nevada.
Potential reprocessing of silver from the historic leach pads at
Candelaria is being investigated.
Additional opportunities lie in previously identified high-grade silver
intercepts down-dip and the possibility of increasing the substantive silver mineralization along-strike
from the two past-producing open pits.
The Company has staked 636 lode claims and entered into a Lease/Purchase Agreement to acquire
five patented claims on its Cherokee project located in Lincoln County, Nevada, host to multiple silver-
copper-gold vein systems traced to date for over 12 km along-strike.
The property also has potential for
limestone related polymetallic plus silver and gold and/or other intrusive related systems at depth.
Silver One holds an option to acquire a 100% interest in the Silver Phoenix Project. The Silver Phoenix
Project is a very high-grade native silver prospect that lies within the "Arizona Silver Belt", immediately
adjacent to the prolific copper producing area of Globe, Arizona.
In addition, the Company also holds a 100% interest in three significant silver assets located in Mexico -
Peñasco Quemado, Sonora; La Frazada, Nayarit; and Pluton, Durango, acquired from First Mining
Gold, one of the Company's largest shareholders.
For more information, please contact:
Silver One Resources Inc.
Gary Lindsey
Phone: (720) 273-6224
Email:
Forward-Looking Statements
Information set forth in this news release contains forward-looking statements that are based on
assumptions as of the date of this news release. These statements reflect management's current
estimates, beliefs, intentions, and expectations. They are no guarantees of future performance. Silver
One cautions that all forward-looking statements are inherently uncertain, and that actual performance
may be affected by a few material factors, many of which are beyond Silver One's control. Such factors
include, among other things: risks and uncertainties relating to Silver One's limited operating history,
ability to obtain sufficient financing to carry out its exploration and development objectives on its mineral
properties, obtaining the necessary permits to carry out its activities and the need to comply with
environmental and governmental regulations. Accordingly, actual, and future events, conditions and
results may differ materially from the estimates, beliefs, intentions and expectations expressed or
implied in the forward-looking information. Except as required under applicable securities legislation,
Silver One undertakes no obligation to publicly update or revise forward-looking information.
NEITHER 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 RELEASE.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/64757