Arian Silver Corporation's shares rocketed Friday as the mining company announced a deal to acquire a processing plant in Mexico to increase capacity.
The explorer signed a provisional agreement with Sandy Hill, a company incorporated in the British Virgin Islands, to buy a plant with a capacity to treat up to 1,500 tonnes per day of silver-lead-zinc ore.
Arian will pay an initial $0.1m to secure a 120-day due diligence period to confirm the El Bote Mill is still suitable. The mill has a past history of treating run of mine ore from Arian's San Jose project.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The final purchase price amounts to $3.12m, subject to results.
"I am very pleased to announce this important step forward towards achieving our stated intention of becoming a more significant silver producer from our San Jose project," said Chief Executive Officer of Arian, Jim Williams.
"We have already demonstrated that we have the silver, lead and zinc resources to support an expanded operation at San Jose and acquisition of this larger processing plant can only accelerate this aim."
He said on completion of the acquisition, the EL Bote Mill will be disassembled and relocated to an already permitted 24 hectare site on the eastern side of the San Jose Property.
RD
-
Cash in on the growth prospects of Europe's companiesOpinion Marcel Stötzel, co-portfolio manager of the Fidelity European Trust, selects three stocks
-
Is the AI boom another dotcom bubble?25 years on from the dotcom bubble bursting, is it time for investors to consider the sustainability of the AI boom in the stock market?
