Arian Silver Corporation (“Arian Silver” or the “Company”), (AIM:AGQ, TSXV:AGQ), a silver exploration, development and production company focussed on silver projects in the silver belt of Zacatecas, Mexico, is pleased to report that it has successfully purchased the 2% Net Smelter Return (“NSR”) royalty on its wholly owned San José project.
Arian Silver entered into an earn-in agreement to acquire the San José project through a number of staged payments between 2006 and 2010, when the final payment was made. The previous owner retained a 2% NSR royalty on the San José project, which under the terms of and during the period covered by the earn-in agreement, Arian Silver had the option to buy, for US$1 million; this right expired in January 2010.
Arian Silver has now come to an agreement with the previous owner of the San José project to purchase the 2% NSR Royalty for US$750,000 which will be paid in staged instalments over the next six months. The purchase price includes the amount owing for NSR payments due under the former toll milling operations.
Jim Williams, Chief Executive Officer of Arian Silver, commented:
“Our deal to purchase the 2% NSR royalty for the discounted price of US$750,000 represents excellent value for the Company, especially as it includes the royalty payments owed in respect of the previous toll milling operations. This enhances the overall economics of the San José project, allowing the Company to retain the very significant cash flows that would otherwise be paid out.”
“The timing of this acquisition is especially pertinent given the imminence of first concentrate production at the Company’s La Tesorera processing plant.”
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For further information please contact:
|Arian Silver Corporation|
Jim Williams, CEO
David Taylor, Company Secretary
Fuad Sillem, Head of Corporate Development
(London) +44 (0)20 7887 6599
|Northland Capital Partners Limited|
Gerry Beaney / John Howes
(London) +44 (0)20 7382 1100
|Grant Thornton UK LLP|
Philip Secrett / Ed Thomas
(London) +44 (0)20 7383 5100
|Yellow Jersey PR Limited|
(London) +44 (0)7768 537 739
This press release contains certain “forward-looking information”. All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future. This forward-looking information reflects the current expectations or beliefs of the Company based on information currently available to the Company as well as certain assumptions. Forward-looking information is subject to a number of significant risks and uncertainties and other factors that may cause the actual results of the Company to differ materially from those discussed in the forward-looking information, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, but are not limited to, unexpected issues arising during the commissioning process or delays in completing the zinc circuit. The value of royalty payments that would otherwise have been made to the previous owner of the San José project is determined by the value of future production, for which it is necessary to make assumptions regarding the economics of the project.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) and no stock exchange, securities commission or other regulatory authority accepts responsibility for the adequacy or accuracy of this release nor approved or disapproved of the information contained herein.