First Majestic Silver announces that it has agreed to acquire from Gold Canyon Resources Inc., a wholly-owned subsidiary of First Mining Gold Corp., (“First Mining”) a stream on 50% of payable silver produced from the Springpole Gold Projectlocated in Ontario, Canada. First Majestic will pay First Mining total consideration of $22.5 million in cash and shares, over three payments, for the silver stream which covers the life of the Project.
According to the 2019 Preliminary Economic Assessment (“PEA”), average silver production from Springpole in years two through nine of the mine plan is expected to be 2.4 million ounces of silver per year. A total of 22 million ounces of silver is expected to be recovered over the life of the project - of which 50% would be purchased by First Majestic.
Springpole is one of Canada’s largest, undeveloped gold projects with permitting underway and the results of a Pre-Feasibility study anticipated in early 2021. The project contains NI 43-101 compliant resources of 24.19 million ounces of silver in the Indicated category and 1.12 million ounces of silver in the Inferred category, plus 4.67 million ounces of gold in the Indicated category and 0.23 million ounces of gold in the Inferred category.