(MENAFN- ProactiveInvestors) ()(NYSE MKT:SVLC) has signed a five-year option agreement to acquire a 100 percent interest in Evrim Resources' (CVE:EVM) Cumobabi property in Mexico.
The company said the property is in the general vicinity of its Santa Elena mine and next to the Ermitano asset which was previously optioned by SilverCrest. When combined SilverCrest now controls over 300 sq km of mineral rights next to or near Santa Elena.
Under the terms of the new deal SilverCrest will pay US$75000 on signing the agreement and US$50000 each year thereafter completing a minimum of US$500000 in exploration expenditures by the second anniversary. It will also deliver a production notice within five years and specify mine and construction plans with accompanying permits.
Evrim will retain a 1.5 percent net smelter returns royalty on the property.
SilverCrest said the acqusition "significantly consolidates" its land position in the area of its Santa Elena mine. The concession hosts the same type of volcanic rocks that host the Santa Elena gold and silver mineralization it added.
"The lands are considered to be highly prospective and are expected to play a strategic role in the organic growth of SilverCrest's resources" the company said.
Initial exploration work is planned on the Cumobabi in 2015.
The Mexico-focused company is still transitioning its Santa Elena mine from open pit heap leach to underground mining and milling operations. During the latest quarter it successfully commissioned the mine's new 3000 tonnes per day processing facility and achieved record silver equivalent production.
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