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Silver Bull Resources Grants an Option Entitling South32 to Form a 70/30 Joint Venture in the Sierra Mojada Project for an Aggregate Investment of US$100 Million
VANCOUVER, British Columbia , June 04, 2018 (GLOBE NEWSWIRE) -- Silver Bull Resources, Inc. (TSX:SVB) (OTCQB:SVBL) (“Silver Bull”) is pleased to announce that i
About this update from Silver Bull Resources, Inc.
[{"type":"text","content":" VANCOUVER, British Columbia , June 04, 2018 (GLOBE NEWSWIRE) -- Silver Bull Resources, Inc. (TSX:SVB) (OTCQB:SVBL) (“Silver Bull”) is pleased to announce that it has signed an agreement with a wholly owned subsidiary of South32 Limited (ASX/JSE/LSE: S32) (“South32”) whereby Silver Bull has granted South32 an option to form a 70/30 joint venture with respect to Silver Bull’s Sierra Mojada project (“Project”). To maintain the option in good standing, South32 must contribute minimum exploration funding of US$10 million (“Initial Funding”) during a 4 year option period with minimum aggregate exploration funding of US$3 million, US$6 million and US$8 million to be made by the end of years 1, 2 and 3 of the option period respectively. South32 may exercise its option to subscribe for 70% of the shares of Minera Metalin S.A. De C.V. (“Metalin”), the wholly owned subsidiary of Silver Bull which holds the claims in respect of the Project, by contributing $US100 million to Metalin for Project funding, less the amount of the Initial Funding contributed by South32 during the option period. Tim Barry, President, CEO and director of Silver Bull states, “This validates the significant success we have had in identifying high grade sulphide zones at the Sierra Mojada project. South32 is a globally diversified metals and mining company that will bring funding and significant technical expertise to the project. We believe this agreement recognizes the significant potential at the Sierra Mojada project.” Highlights of the Agreement Silver Bull and South32 have entered into an agreement whereby Silver Bull has granted South32 an option to subscribe for a 70% interest in Silver Bull’s Mexican subsidiary Metalin for a subscription price of US$100 million less the Initial Funding amount (the “Subscription Amount”). The Subscription Amount will be used to fund expenditure on exploration and development costs on the Project. Once the Subscription Amount has been spent on the Project the parties will each fund their pro rata portion of all future Project funding. To maintain the option in good standing South32 must spend a minimum of $US10 million over the next four years. Should South32 elect not to continue with the Project during the four year option period, the Project will remain 100% owned by Silver Bull. The first year’s explorati...