Defiance Silver Corp (“Defiance”) is pleased to announce the successful renegotiation of the option agreement to acquire the San Acacio Silver Mine located in Zacatecas State Mexico. The new agreement has pushed the option exercise payment from May 2013 to August 2015.
“I am extremely pleased with the substantial increase in the time allowed to purchase the San Acacio Mine,” stated Bruce Winfield, CEO. “Three years is sufficient time to allow Defiance to explore, develop and finance the San Acacio Mine. This extension also allows us to align the mine development schedule with the refurbishment and recommencement of the 200 tpd Santa Gabriela Mill. Together, the mine and mill enable Defiance to enter the ranks of silver producers within 15 months of receiving financing.
The original agreement granted Defiance nine months from the signing of the definitive trust agreement and the payment of $275,000 USD in option payments to make a $5.5 Million USD payment to acquire the mine. The new agreement gives Defiance 3 years from the signing of the trust agreement to make the $5.5 million purchase payment. The new agreement consists of a $275,000 payment anticipated to occur in August 2012 that extends the option to August 2013, a $150,000 option payment to extend the option to August 2014 and a $225,000 option payment to extend the option to August 2015. As in the original agreement, the vender retains a 2.5% NSR which may be purchased for $2.5 million.
About Defiance Silver:
Defiance Silver Corp. is a near term silver producer engaged in the acquisition, exploration, and development of advanced silver projects in Zacatecas Mexico. Defiance is focused on: 1) the purchase and refurbishment of the 200 tpd Santa Gabriela Mill, 2) the exercising of an option to purchase the San Acacio Mine, and 3) the definition of feed for the Santa Gabriela Mill from surface dumps and the San Acacio Mine with its historical resource (reference Defiance Silver Corp New release dated November 1, 2011).
On behalf of the Directors
“W.D. Bruce Winfield”
W.D. Bruce Winfield
President and CEO
For additional information please visit the Company’s website at www.defiancesilver.com.
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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, 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 Defiance will be able to raise the minimum or maximum private placement on the terms and conditions referred to above. Defiance does not assume the obligation to update any forward-looking statement.