Business
Silver One to Sell Mexican Silver Assets
Silver One Grants New Stock Options Vancouver, British Columbia--(Newsfile Corp. - September ...
About this update from Silver One Resources Inc.
[{"type":"text","content":"Silver One to Sell Mexican Silver AssetsSilver One Grants New Stock OptionsVancouver, British Columbia--(Newsfile Corp. - September 28, 2020) - Silver One Resources Inc. (TSXV: SVE) (OTCQX: SLVRF) (FSE: BRK1) (\"Silver One\" or the \"Company\") is pleased to announce it has entered into a letter of intent (the \"LOI\") with Plymouth Realty Capital Corp. (\"Plymouth\"), a capital pool company, to sell its Canadian subsidiary KCP Minerals Inc., which holds all of its Mexican silver properties. Plymouth's aim is to become a significant player in the silver space though the acquisition and advancement of quality silver projects.Since the Company's agreement with Silver Standard (now SSR Mining) in 2017, allowing Silver One to acquire a 100% interest in the past-producing Candelaria silver mine in Nevada, Silver One has been shifting its exploration efforts into the southwestern US. Consequently our Mexican assets, originally acquired from First Mining Gold Corp. in 2016, have become of secondary importance to the Company.Greg Crowe, President and CEO, commented: \"The sale of our Mexican assets to Plymouth provides excellent value to Silver One. Since 2018, the Company has been focusing on its projects in Nevada and more recently Arizona. Silver One will now have a significant position in a potential Mexican growth story, going forward into what appears to be a strong precious metals bull market. In addition to a highly leveraged share position in Plymouth, the company will also retain a 1.5% NSR on each of the projects, that can be bought down to 0.5% by paying to Silver One US$ 0.5 million per property.\"Terms of the TransactionUnder the terms of the LOI, Silver One has agreed to transfer to Plymouth a 100% interest in all of its Mexican Silver Properties and, in consideration of which, Plymouth will issue $6,000,000 in cash and shares of Plymouth as follows: (a) pay $1,000,000 in cash, and (b) issue $5,000,000 of common shares of Plymouth (the \"Consideration Shares\") to Silver One. The total number of Consideration Shares to be issued to Silver One is currently anticipated to be 5,000,000 shares of Plymouth.Plymouth will also complete a private placement financing of 10,000,000 subscription receipts at $1.00 per subscription receipt for total proceeds of $10,000,000 to fund the exploration and development of the Mexican silver ...