Defiance Silver Corp. Amends Agreement with IMPACT Silver Corp.
12.09.2011 | Marketwire
VANCOUVER, BRITISH COLUMBIA -- (Marketwire - Sept. 12, 2011) - Defiance Silver Corp (Defiance) (TSX VENTURE: DEF) announces that it has amended its option agreement with IMPACT Silver Corp. (IMPACT) for the acquisition of the Santa Gabriela (formerly Veta Grande) processing plant and associated surface rights, as well as 13 mining concessions in the historic silver mining district of Zacatecas in central Mexico.As announced August 25, 2011 Defiance had agreed to acquire IMPACT's processing plant and mineral property interests in the Zacatecas area of Mexico for a total of 6,675,000 common shares of Defiance, to be issued as to 1,668,750 shares within 90 days of signing of the option agreement, with the balance of 5,006,250 shares upon achieving commercial production at the Santa Gabriela mill. The agreement has been amended such that the first payment will be 1,787,000 shares, and the second payment upon achieving commercial production at the mill will be paid in cash ($1,955,200). The agreement remains subject to approval by the TSX Venture Exchange, and completing a financing for a minimum of $1,500,000 prior to the final closing.
As the amended transaction no longer amounts to a “reverse take-over“ under TSXV Policies, Defiance will not require shareholder approval, and will be making application for the resumption of trading of its shares.
Defiance plans to aggressively develop the Zacatecas assets by: focusing on completing the refurbishment of the processing plant including the schedule of upgrades required to maintain the operating permit and recommence operations; exploring the many historic mining occurrences and mine dumps on the optioned concessions to define feed for the mill; and to identify additional acquisitions to build a silver production center.
On behalf of Defiance Silver Corp.
Bruce Winfield
President and CEO
Forward-Looking Statements. This Defiance News Release may contain certain “forward-looking“ statements and information relating to Defiance that are based on the beliefs of Defiance management, as well as assumptions made by and information currently available to Defiance management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including but not limited to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. Specifically, there is no assurance that Defiance will be able to raise the funds necessary to close the transaction with IMPACT, that it will be successful in restoring the mill to the point where it can achieve commercial production; or that it will be able to profitably operate the mill. Defiance does not assume the obligation to update any forward-looking statement.
Neither 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 release.
Contact Information
Defiance Silver Corp.
Bruce Winfield
President and CEO
778-729-0333
www.defiancesilver.com