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Aftermath Silver and SSR Mining Sign Acquisition Agreement for the Berenguela Silver-Copper Project, Peru
Vancouver, British Columbia--(Newsfile Corp. - October 1, 2020) - Aftermath Silver Ltd. (TSXV:...
About this update from Aftermath Silver Ltd.
[{"type":"text","content":"Aftermath Silver and SSR Mining Sign Acquisition Agreement for the Berenguela Silver-Copper Project, PeruVancouver, British Columbia--(Newsfile Corp. - October 1, 2020) - Aftermath Silver Ltd. (TSXV: AAG) (OTCQB: AAGFF) (the \"Company\" or \"Aftermath Silver\") is pleased to announce that it has signed a definitive acquisition agreement (the \"Acquisition Agreement\") with SSR Mining Inc. (\"SSRM\") to purchase 100 percent of the Berenguela silver-copper project located in Puno, Peru, through the purchase of 100 percent of the shares in the Peruvian holding company Sociedad Minera Berenguela S.A. (\"SOMINBESA\") (please see previous Aftermath Silver news release, dated July 27, 2020).The closing of the acquisition is subject to SSRM having reacquired a 100 percent direct and indirect interest in SOMINBESA, the owner of the project, from Valor Resources Ltd., the previous operator of the project, the final approval of the TSX Venture Exchange and certain other customary closing conditions.Ralph Rushton, President of Aftermath Silver commented: \"I'd like to thank everyone at SSR Mining and the Aftermath Silver team here, and in Peru, for all of their hard work in drafting this agreement. The time frame from the initial approach to SSRM to execution of this agreement has been very short, and is a credit to the professionalism of everyone involved. We're looking forward to getting down to work at Berenguela as soon as COVID-19 safety protocols permit.\"Transaction summaryAftermath Silver and SSRM have agreed to a total consideration of US$13 million made in staged cash payments, C$3 million in Aftermath Silver common shares, and a sliding-scale net smelter returns royalty (\"NSR\"), as follows:US$1 million cash deposit (paid);US$1 million cash on the initial closing date (anticipated as being the earlier of: 10 business days following the satisfaction or waiver of all of certain initial conditions; and November 30, 2020) (the \"Initial Closing Date\") of the proposed transaction and C$3 million in Aftermath Silver common shares, using the volume-weighted average share price five trading days prior to the date of signing the Acquisition Agreement, capped at a maximum 9.9 percent of Aftermath Silver's issued and outstanding shares, with the remainder, if any, to be paid in cash;US$2.25 million cash to be paid on the first annive...