Silver Bull Resources has announced that it has signed an agreement with a wholly owned subsidiary of South32 Limited whereby Silver Bull has granted South32 an option to form a 70/30 joint venture with respect to Silver Bull’s Sierra Mojada project.

Silver Bull Resources (TSX:SVB,OTCQB:SVBL) has announced that it has signed an agreement with a wholly owned subsidiary of South32 Limited (ASX:S32,LSE:S32) whereby Silver Bull has granted South32 an option to form a 70/30 joint venture with respect to Silver Bull’s Sierra Mojada project.

As highlighted in the press release:

Silver Bull and South32 have entered into an agreement whereby Silver Bull has granted South32 an option to subscribe for a 70 percent percent interest in Silver Bull’s Mexican subsidiary Metalin for a subscription price of US$100 million less the initial funding amount. The subscription amount will be used to fund expenditure on exploration and development costs on the project. Once the subscription amount has been spent on the project the parties will each fund their pro rata portion of all future project funding. To maintain the option in good standing South32 must spend a minimum of US$10 million over the next four years. Should South32 elect not to continue with the project during the four year option period, the project will remain 100 percent owned by Silver Bull.
The first year’s exploration program, planned to start as soon as possible, will involve a regional airborne electromagnetic survey, followed by a targeted drilling program on the project. Initial targets will include extensions of the sulfide zones recently identified by Silver Bull and the Palomas Negros area. The exploration program will be initially managed by Silver Bull.

Silver Bull describes Sierra Mojada as an open pittable oxide deposit with a measured and indicated resource of 58.7 million tonnes grading 3.6 percent zinc and 50 grams per tonne of silver.

Click here to read the full Sulver Bull Resources (TSX:SVB,OTCQB:SVBL) press release.