Cyprium Mining Acquires Controlling Interest in Historic Potosi Silver Mine

Cyprium Mining (TSXV:CUG) has closed the acquisition of a 53 percent controlling interest in the historic Potosi Silver Mine, San Guillermo processing facility and exploration property adjacent to the mine. Cyprium’s partners in the joint venture are entities controlled by family members of Daniel Valenzuela, a third generation miner who has owned the joint venture assets for over sixty years.
As quoted in the press release:

The Joint Venture, which will have a term of twenty-years, will be carried out through JV CYPVAL Mining SAPI de CV, (“CYPVAL“) a Mexico based private company. Cyprium acquired its 53% interest in CYPVAL in return for a US$2.5 million financial commitment to be completed by December 31, 2016. The financial commitment will consist of a US$1.9 million equity investment in CYPVAL and a three-year, 12% loan to CYPVAL in the amount of US$600,000. In consideration for the loan, Cyprium will be entitled to a 0.75% ten year royalty on sales of concentrates from CYPVAL. If Cyprium fails to invest the US$1.9 million by December 31, 2016, Cyprium’s percentage ownership in CYPVAL will be reduced proportionally. Cyprium will exercise operational and financial control of the Joint Venture. As part of its commitment to the Joint Venture, Cyprium has also issued 1,000,000 common shares of Cyprium (the “Common Shares“) with a deemed value of $0.14 per share and 100,000 share purchase warrants exercisable to purchase Common Shares at a price of $0.17 per share for five years.

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