Arian Silver Corporation shares surge on plant acquisition
Arian Silver Corporation's shares rocketed Friday as the mining company announced a deal to acquire a processing plant in Mexico to increase capacity.
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.
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