Defiance Silver Corp (Defiance) 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.
President and CEO