Golden Arrow and Silver Standard Enter Business Combination Agreement

Golden Arrow Resources Corp. (TSXV:GRG) announced that it’s entered into a business combination agreement with Silver Standard Resources Inc. (TSX:SSO,NASDAQ:SSRI).
The agreement contemplates the joint development of Golden Arrow’s Argentina-based Chinchillas silver-lead-zinc project, as well as the combination of Chinchillas with Silver Standard’s producing Pirquitas silver-zinc mine into a new operation.
As quoted in the press release:

Subject to an 18-month period of pre-development activities (the “Preliminary Period”), Silver Standard will have the right to commence a business arrangement that will see the Pirquitas Mine and the Chinchillas project combined into a 75% (Silver Standard) 25% (Golden Arrow) jointly owned mining business, with Silver Standard assuming the role of operator.
During the Preliminary Period, Silver Standard will pay Golden Arrow up to C$2M on completion of certain milestones, and invest up to an estimated US$12.6M, with a minimum expenditure commitment of US$4M, at Chinchillas to advance the project and evaluate the feasibility of developing a combined mining business with its existing Pirquitas operation. Golden Arrow will assist in the pre-development activities and evaluation process. Furthermore, Golden Arrow will be paid an amount equal to 25% of the Pirquitas mine’s cash equivalent earnings during the Preliminary Period, less certain expenditures for exploration (including pre-development expenditures), capital investment and closure costs incurred during the Preliminary Period, based on a pre-defined formula, payable on closing of the business combination.

Joseph Grosso, executive chairman, president and CEO of Golden Arrow, commented:

Combining these two neighboring assets offers compelling benefits and allows us to accelerate the development of Chinchillas while benefiting from the existing infrastructure and cash flow being generated at the producing Pirquitas Mine. With this partnership we have the potential to deliver attractive returns to our shareholders while ensuring the Chinchillas project is advanced, creating immediate and lasting benefits for residents and communities in the region.

Click here to read the full Golden Arrow Resources Corp. (TSXV:GRG) press release.