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Americas Gold Announces Strategic JV with Mr Eric Sprott

Mining News - Published on Thu, 12 Sep 2019

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Americas Gold and Silver Corporation, a growing North American precious metals producer, today announces a strategic JV agreement with Mr Eric Sprott to recapitalize the mining operations at the Galena Complex, located in the Silver Valley of Northwest Idaho. The strategic JV expected to be 60/40 Americas/Sprott respectively will allow Americas to increase development, modernize infrastructure, purchase new mining equipment, and target exploration below current operating areas with the goal of positioning the Galena Complex to significantly increase resources, production, and reduce operating costs at the mine over the next two years.

Mr Sprott through 2176423 Ontario Ltd, a corporation which is beneficially owned by him, will initially commit up to USD 20 million to fund capital improvements and operations for the first year to earn a 40 percent interest in the Company’s Galena Complex. Americas will invest an additional USD 5 million to fund further capital improvements in 2020. After the first year of operations under the Agreement, the parties will revert to their percentage ownership interests to fund capital projects and operations as required in proportion to those interests.

Oversight of the joint venture will consist of 2 nominees from Americas and 1 nominee by Mr Sprott. Americas will continue to manage the day-to-day operations so long as it retains an interest in the joint venture.

Darren Blasutti, President and CEO of Americas Gold and Silver, said that “We are thrilled to partner with Eric Sprott on this joint venture. He is already the single largest shareholder in Americas; with this new venture, we are further solidifying our relationship with him. We look forward to putting his significant investment into developing the Galena Complex to benefit all our stakeholders in the coming months and transforming the Galena Complex into a leading US-based, profitable silver producer.”

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Posted By : Rabi Wangkhem on Thu, 12 Sep 2019
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