IMPACT Silver Corp. Options
Zacatecas Assets to Defiance Silver Corp.
IMPACT Silver Corp. ("IMPACT") is pleased to announce the signing
of an agreement with Defiance Silver Corp. ("Defiance") (TSX.V:
DEF) to option its Veta Grande Project assets in
Zacatecas, Mexico in exchange for a major shareholding in Defiance.
The Zacatecas Veta Grande Project assets include
the 200-tonne-per-day ("tpd") Santa
Gabriela processing plant, surface rights, 10 mineral concessions owned
100% by IMPACT and three mineral concessions owned 27% by IMPACT but
subject to a right of first refusal for acquisition by joint venture
partner Silver Sun Resource Corp.
The option agreement consists of two staged payments to IMPACT totaling
6,675,000 common shares of Defiance which will represent a major
shareholding in Defiance. The initial payment of 1,668,750 common shares of
Defiance is to occur on or before 90 days from the signing of the option
agreement. The second and final payment of 5,006,250 common shares of
Defiance is to occur on the final closing defined as on or before the
earlier of two (2) years from signing of the option agreement or on
achieving commercial production at the Santa Gabriela mill. Commercial
production is defined as production of 160 tonnes
in a 30 consecutive day period. During the term of the option, Defiance
will be the operator responsible for carrying out work programs and
maintaining the assets in good standing under terms of an operating licence with IMPACT. This includes an existing
operating permit for the processing plant that requires a schedule of
upgrades to be completed to keep it current. Defiance is also required to
complete a financing for a minimum of $1,500,000 prior to the final
closing. This agreement is subject to approval by the TSX Venture Exchange.
The potential creation of a control block is subject to approval by the
shareholders of Defiance.
IMPACT management feels that signing this option agreement will unlock the
value of these non-core assets for IMPACT in the form of a major
shareholding in Defiance, a junior company with excellent management and a
purposeful plan to advance these assets along with plans for additional
acquisitions. This arrangement will also allow the Company to focus its
resources on expanding its flagship mining operations at the Royal Mines of
Zacualpan Silver District and, in the immediate
future, the Capire Mine Development Project,
scheduled for production in late 2011 as well as developing other projects
IMPACT Silver Corp. is a profitable silver-focused mining and exploration
company operating in Mexico with a producing silver operation at the
423-square-kilometer Royal Mines of Zacualpan
District; the adjacent 200-square-kilometer Mamatla
Mineral District which includes the Capire Mine
Development Project; and a portfolio of projects with an operational processing
plant at Zacatecas under option to Defiance Silver Corp. Additional
information including details of the Zacatecas assets can be found on the
Company's website at www.IMPACTSilver.com.
On behalf of the Directors of IMPACT Silver Corp.,
"Frederick W. Davidson"
President & CEO
For further information, please contact:
Sunny Pannu, Investor Relations
(604) 681 0172 or via email at email@example.com
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accuracy of this news release.