SilverCrest Mines Inc. (TSXV:SVL,NYSE:SVLC) announced that they have exercised their option to acquire a 100 percent interest in the nine La Joya West concessions.
As quoted in the press release:
The Company exercised the option by making a final payment of US$2.5 million to the concession owners, one-half was paid in cash and one-half was paid by issuing a total of 615,776 common shares of the Company at an issue price of Cdn$2.06 per share (totaling $1,268,499 or US$1.25 million). The concession owners retain a 2% net smelter return royalty from mineral production on the property covered by the concessions.
SilverCrest’s President, J. Scott Drever, said:
The La Joya West concessions contain the large La Joya silver-copper-gold resource as well as the Coloradito tungsten-molybdenum deposit. Exercise of the option is consistent with SilverCrest’s ongoing strategy of acquiring 100% ownership in its projects once substantial shareholder value has been created at minimal financial risk. We have commenced a Preliminary Economic Assessment (PEA) to determine the broad economic parameters for potential development of a higher grade starter pit with a conventional processing facility.