Business
Argentum Signs Non-Binding Letter of Intent to Merge with Norsemont II
Toronto, Ontario--(Newsfile Corp. - April 25, 2019) - Argentum Silver Corporation (TSXV: ASL) ...
About this update from Argentum Silver Corp.
[{"type":"text","content":"Argentum Signs Non-Binding Letter of Intent to Merge with Norsemont IIToronto, Ontario--(Newsfile Corp. - April 25, 2019) - Argentum Silver Corporation (TSXV: ASL) (\"Argentum\" or the \"Company\") is pleased to announce that the Company has signed a non-binding letter of intent (\"LOI\") with Norsemont II Resources Corp. (\"Norsemont\"), a private Ontario company. Norsemont owns a 100% interest in the Cochavara Silver-Lead-Zinc Project (\"Cochavara\") in Northern Peru. The transaction contemplated by the LOI is a related party transaction. Cochavara consists of six concessions totalling 1979 hectares located in the Department of La Libertad in Northern Peru, approximately 70 kilometres east of the city of Trujillo. The historic Quiruvilca silver/lead/zinc mine (\"Quiruvilca\") is located 3.5 kilometres northeast of the northern boundary of the Cochavara Project area. Quiruvilca is a large polymetallic vein deposit with over 130 different mineralized structures hosted in the Mid-Miocene Calipuy volcanic complex. The mineralization at Quiruvilca is contained in a series of narrow veins filling fractures and faults. Although narrow, the veins tend to have an extensive lateral and vertical continuity. Production from the Quiruvilca mine was first recorded in 1789, and has been mined on an industrial scale since 1924. More recently, Pan American Silver acquired the Quiruvilca mine in 1995 and sold the mine to a private company in 2012. Cochavara currently has a valid exploitation permit to extract mineral for processing at third-party plants. Terms of the LOI Subject to regulatory and all other necessary approvals, Argentum will acquire all the issued and outstanding securities of Norsemont in exchange for $500,000 worth of common shares in the capital of Argentum at a price per share equal to the five-day volume-weighted average trading price of the Argentum shares prior to signing a definitive agreement with respect to the proposed acquisition. In addition, holders of convertible securities of Norsemont will receive replacement securities having similar economic terms. Following completion of the acquisition, Argentum will provide the ongoing management team for the Company and the shareholders of Norsemont will be entitled to have one nominee appointed to the board of directors of Argentum.Completion of the acquisition is subject...