Toronto - TheNewswire - November 23, 2020: AbraPlata Resource Corp. (TSXV:ABRA) (OTC:ABBRF) ("AbraPlata" or the "Company") announces that it has made a US$5 million property payment to SSR Mining Inc. ('SSRM"). This payment is in accordance with the terms of the Amended Share Purchase Agreement (the "Agreement"), dated September 11, 2019, for the acquisition by AbraPlata of 100% of the Diablillos silver-gold project mineral claims in Salta province, Argentina.
As per the terms of the Agreement, the US$5 million payment was to be paid to SSRM by the earlier of:
- July 31, 2023;
- the date on which a Diablillos Feasibility Study in respect of all or any part of the Diablillos Concessions has been obtained; and
- 90 days after demand by SSRM for payment if
(a) AbraPlata's market capitalization exceeds $100,000,000 for 20 consecutive trading days (on the primary stock exchange on which such entity's shares are traded) or
(b) after November 1, 2020, the spot price of silver (based on the London Bullion Market Association (LBMA) Silver Price as published by the LBMA on its website (the "Benchmark") exceeds $25 per ounce for 20 consecutive trading days on the Benchmark;
Also, as per the terms of the Agreement, a final payment of US$7 million is to be paid to SSRM, by the earlier of:
- July 31, 2025; and
- the date on which Commercial Production occurs in respect of all or any part of the Diablillos Concessions.
John Miniotis, President and CEO, commented "Following this payment, we continue to have a very strong cash position in AbraPlata, with approximately $18 million of cash on hand and no further property payments due to SSRM for almost five years. Our strong financial position, provides us with the opportunity to continue to aggressively explore and advance the Diablillos project."
AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which is well-advanced, with more than US$40 million spent historically on exploration with drilling ongoing and an initial open pit PEA completed in 2018. The Company is led by an experienced management team and has long-term supportive shareholders including Mr. Eric Sprott, Altius Minerals and SSR Mining. In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration. AbraPlata is listed on the TSX-V under the symbol "ABRA".
For further information please visit the AbraPlata website at www.abraplata.com or contact:
John Miniotis, President & CEO
Tel: +1 416-306-8334
This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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