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.
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
-
Reeves urged to axe stamp duty from UK shares held in an ISAChancellor Rachel Reeves is reportedly considering axing stamp duty from UK shares held in stocks and shares ISAs. What could it mean for your portfolio?
-
Family investment companies explained: how the ultra wealthy shield their money from the taxmanWealthy families are increasingly turning to family investment companies to keep more of their money away from HMRC – but what are these arrangements and how do they work?
