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Highlights
- Expands into San Bernardino County with new assets
- Acquires Calico North and signs deal on Kramer Hills
- Strengthens presence in high-grade silver regions
Silver Mines (ASX:SVL) has unveiled a major step in expanding its North American presence through strategic acquisitions in San Bernardino County, California. The company has taken decisive action to acquire the Calico North Project and secured an earn-in agreement for the Kramer Hills Project, both known for their silver-rich potential and historical mining significance.
Calico North Project Acquisition
The acquisition of California Silver’s Calico North Project marks a significant milestone for Silver Mines. Located in the Mojave Desert, the Calico North area is historically prolific, with neighboring sites producing over 20 million ounces of silver in the past. Despite its rich history, the area has seen minimal exploration in the last century, presenting untapped opportunities.
To secure this project, Silver Mines will pay US$600,000 (approximately A$923,327) and issue 39 million shares. The transaction is subject to customary approvals. The company views this acquisition as a low-impact expansion aligned with its strategy of targeting high-potential brownfield opportunities in secure jurisdictions.
Recent rock chip sampling has returned promising silver-barite mineralisation, enhancing the appeal of the Calico North area. The project is also near prominent operations like Rio Tinto’s (ASX:RIO) Borax Mine and Equinox Gold’s (ASX:EQN) Castle Mountain Mine, indicating the region’s strong mineral endowment.
Kramer Hills Project Earn-In Agreement
In a parallel development, Silver Mines has entered a binding agreement with Lustrum Gold for the Kramer Hills Project, situated on a historically explored 48km² site. The company can earn up to 80% interest in the project through staged commitments.
The initial 50% interest will be granted upon a US$3.5 million investment in exploration and property maintenance, accompanied by a US$1.25 million cash payment and US$1.5 million in shares. The share allocation is based on a 10-day volume-weighted average price and will be subject to voluntary escrow for 12 months.
An additional 30% interest can be acquired within 60 days of meeting the first phase terms by issuing US$2 million worth of shares under the same pricing terms.
Strategic Vision
Silver Mines' leadership sees these moves as instrumental in building a robust U.S. portfolio alongside its flagship development. Managing Director Jo Battershill noted that these projects align with the company's strategic focus on brownfield sites, strong geological signatures, and minimal balance sheet disruption.
With these steps, Silver Mines (SVL) cements its expansion into a historically productive and geologically rich district, setting the stage for meaningful exploration and value creation across its new U.S. holdings.
