Silver Dollar Resources, through its subsidiary, has entered an asset purchase deal with Silver Valley Metals and its subsidiary North Idaho Metals to acquire the Ranger-Page Project in Idaho, US.
This acquisition includes various option rights and includes a total consideration of C$2.1m.
The subsidiary of Silver Dollar will pay C$300,000 in cash and issue six million common shares at C$0.30 each.
This move will also involve a voting support agreement, ensuring Silver Valley Metals supports Silver Dollar’s board recommendations.
Under the terms of the agreement, should Silver Dollar exercise its option rights, it will grant Silver Valley Metals royalties on net smelter returns from the Government Gulch and Page Mine properties.
However, Silver Dollar retains the right to repurchase a portion of these royalties.
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The transaction includes standard representations, warranties, covenants and indemnities.
Additionally, Silver Dollar will pay a finder’s fee to Kluane Capital FZCO and Canal Front Investments, with the shares issued being subject to a four-month statutory hold.
The expected completion date for the transaction is on or before 22 July 2024, pending Canadian Securities Exchange acceptance.
The Ranger-Page Project is located in northern Idaho’s Silver Valley, also known as the Coeur d’Alene Mining District. This historically productive mineral district has seen more than 90 mines in operation since the first significant lead-zinc-silver discovery in 1884.
It comprises two contiguous patented lode claim groups, Government Gulch and Page Mine, consolidating the western end of the Silver Valley mining corridor under a single operator for the first time.
The land package encompasses six historic mines, with the option to acquire ownership of the project’s mineral rights, which are currently not subject to any royalties.
Silver Dollar president Mike Romanik said: “Ranger-Page is an exciting project, and the acquisition gives us an excellent opportunity to cost-effectively diversify into another world-class silver district amid a rising metal price environment.
“I would also like to welcome Silver Valley Metals as our newest significant shareholder behind only First Majestic Silver and Eric Sprott.
“Brandon Rook and the Silver Valley Metals team did a fantastic job initially consolidating ownership of the project and then systematically and methodically advancing the project to the drill-ready stage on multiple target areas.”
