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Silver Standard Increases Interest In Argentina Silver-Gold Project
VANCOUVER, B.C.--(BUSINESS WIRE)--Aug. 30, 2001--Silver Standard (NASDAQ:SSRI - news; CDNX:SSO. - news) is pleased to announce the closing of an agreement with a wholly-owned subsidiary of Barrick Gold Corporation to acquire Barrick's 20% direct interest in the Manantial Espejo silver-gold project in southern Argentina.
Under the terms of this agreement, Silver Standard issued 400,000 common shares to Barrick to acquire the interest. In addition, Barrick has agreed to defer the payment of a royalty of US$5.00 per ounce of gold and US$0.06 per ounce of silver, formerly due to be paid to Barrick on completion of a final feasibility study on the property, to the commencement of commercial production. Barrick will retain a 3% royalty on certain claims in respect of gold and silver resources discovered in addition to those identified at the time of production.
Silver Standard also reports that it expects to shortly close an agreement with Black Hawk Mining Inc. in which Black Hawk will acquire half of Silver Standard's 20% direct interest in the Manantial Espejo silver-gold project in exchange for a 40% direct interest in the Sulphurets-Bruceside gold-silver project in British Columbia and a cash payment by Silver Standard of $125,000. The cash payment represents return of funds in a joint venture account, credit for assets and an additional cash component. In addition, Silver Standard will pay to Black Hawk a net smelter return royalty of 1.2% on production in excess of current resources of silver and gold already outlined on the property. Black Hawk is a Toronto-based gold producer.
To date, US$17 million has been expended at Manantial Espejo which hosts a significant silver/gold resource. Silver Standard is currently operator of the project and will undertake a minimum of 5,000 meters of diamond drilling later this year. The acquisition reflects Silver Standard's strategy of acquiring quality silver resources at minimal cost.
Silver Standard, with over $4.0 million in cash, is a significant silver resource company with advanced projects located in Argentina, Australia, United States, Canada and Bolivia.
To receive Silver Standard's news releases by e-mail, contact Paul LaFontaine, manager, investor relations at invest@silverstandard.com or (604) 689-3846.
The Canadian Venture Exchange has neither approved nor disapproved of the information contained herein. The statements that are not historical facts are forward-looking statements involving known and unknown risks and uncertainties which could cause actual results to vary considerably from these statements. The risks and uncertainties include those described in Silver Standard's SEC Form 20F as amended. |
