Business
Silver Standard Plans Up to US$12.6M to Advance to Feasibility Golden Arrow's Chinchillas Project for A Business Combination with Pirquitas Mine
(via Thenewswire.ca) Vancouver, BC / TheNewswire / October...
About this update from Golden Arrow Resources Corp.
[{"type":"text","content":"Silver Standard Plans Up to US$12.6M to Advance to Feasibility Golden Arrow's Chinchillas Project for A Business Combination with Pirquitas Mine(via Thenewswire.ca)\n \n \nVancouver, BC / TheNewswire / October 1, 2015 / Golden Arrow Resources Corporation (TSX-V: GRG, FRA: GAC (WKN: A0B6XQ), \"Golden Arrow\" or the \"Company\") is pleased to announce that it has entered into a business combination agreement (the \"Agreement\") with Silver Standard Resources Inc. (TSX-SSO; NASDAQ - SSRI, \"Silver Standard\") which contemplates the joint development of Golden Arrow's Chinchillas project and an agreement to combine the producing Pirquitas Mine and the Chinchillas project, located approximately 35 kilometres apart in Jujuy Province of Argentina, into a single new operation. \n\n \n \nSubject to an 18-month period of pre-development activities (the \"Preliminary Period\"), Silver Standard will have the right to commence a business arrangement that will see the Pirquitas Mine and the Chinchillas project combined into a 75% (Silver Standard) 25% (Golden Arrow) jointly owned mining business, with Silver Standard assuming the role of operator. \n\n \n \n\"Combining these two neighboring assets offers compelling benefits and allows us to accelerate the development of Chinchillas while benefiting from the existing infrastructure and cash flow being generated at the producing Pirquitas Mine\" stated Joseph Grosso, Executive Chairman, President and Chief Executive Officer of Golden Arrow. \"With this partnership we have the potential to deliver attractive returns to our shareholders while ensuring the Chinchillas project is advanced, creating immediate and lasting benefits for residents and communities in the region.\" \n\n \n \nDuring the Preliminary Period, Silver Standard will pay Golden Arrow up to C$2M on completion of certain milestones, and invest up to an estimated US$12.6M, with a minimum expenditure commitment of US$4M, at Chinchillas to advance the project and evaluate the feasibility of developing a combined mining business with its existing Pirquitas operation. Golden Arrow will assist in the pre-development activities and evaluation process. Furthermore, Golden Arrow will be paid an amount equal to 25% of the Pirquitas mine's cash equivalent earnings during the Preliminary Period, less certain expenditures for exploration (inclu...