Vancouver, British Columbia, May 27, 2020 – Aftermath Silver Ltd. (the “Company” or “Aftermath Silver“) (TSX-V: AAG) (OTCQB: AAGFF) is pleased to announce that it has reached an agreement (the “Purchase Agreement“), dated May 25, 2020 (the “Effective Date“), to acquire from SSR Mining Inc. (“SSR“) its 20% interest in the Cachinal silver-gold project for a total consideration of C$700,000. On completion of the transaction, Aftermath Silver will own 99.9% of the shares of Minera Cachinal SA, which owns Cachinal. One share will remain held by a Chilean national as per Chilean business law requirements.
The amounts payable by Aftermath Silver to SSR are:
•C$49,999 paid in cash on the Effective Date; and
•C$50,000 to be paid on the first anniversary of the Effective Date.
As disclosed in the Company’s news release AAG2020 – NR #6 dated May 15, 2020, Aftermath Silver completed the acquisition of 80% of Minera Cachinal from Halo Labs Inc. and has assumed its debts. During the several years of inactivity at the Cachinal Property, SSR, while owning only a 20% interest in the property, paid 100% of the property maintenance costs in order to maintain the property in good standing. Aftermath Silver has agreed to pay SSR a negotiated amount of C$600,000 to settle debts owed to SSR by Minera Cachinal SA. The C$600,000 will be paid to SSR according to the schedule below:
•C$300,000 on the second anniversary of the Effective Date; and
•C$300,000 on the third anniversary of the Effective Date.
Ralph Rushton, President of Aftermath Silver commented: “I am happy to report that Aftermath Silver will, after the completion of customary corporate and securities registration requirements in Chile, be the owner of 100% of the Cachinal silver project in Chile. I would like to thank SSR Mining for their patience as we completed the paperwork for their 20% of Minera Cachinal. With full ownership of the project, we will concentrate on delivering solid exploration results for our shareholders as soon as the COVID restrictions allow.”
Warrant Exercise
The Company also announces that it has received proceeds of C$262,050 since the beginning of April 2020 related to the recent exercise of 2,183,750 warrants, which were exercisable at C$0.12. An updated share structure is posted on Aftermath Silver’s website here:
https://aftermathsilver.com/share-structure/
About Cachinal Silver-Gold Project
The Cachinal silver-gold project is located in Chile’s Antofagasta region (Region II). The project is located about 40 km east of the Pan American Highway, in a nearly flat plain at an elevation of around 2,700 m above sea level, 16 km north of Austral Gold’s Guanaco gold-silver mine.
It is a low-sulphidation epithermal deposit. Shallow drilling has defined the current mineral resources principally to a depth of 150 m below surface and provides sufficient evidence to interpret the presence of high-grade shoots within the vein system extending below the base of a potential open pit. Following these high-grade shoots to depth with drilling will be the initial focus of the company’s efforts to expand the silver-gold mineralization. The oxidation level bottoms at about 120 m to 150 m below surface; however, the down-dip extent of the mineralized structures remains unknown.
Completion of the updated NI 43-101 Technical Report on Cachinal continues to be delayed due to COVID-19 travel restrictions in Chile.
Qualified Person
Peter Voulgaris, MAIG, MAusIMM, a consultant to the Company, is a non-independent qualified person as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this news release, and consents to the information provided in the form and context in which it appears.
About Aftermath Silver Ltd
Aftermath Silver Ltd is a Canadian junior exploration company engaged in acquiring, exploring, and developing mineral properties with an emphasis on silver in Chile. The Company is focused of growth through the discovery and acquisition of quality projects in stable jurisdictions. Aftermath continues to seek new opportunities to capitalize on the current silver environment.
ON BEHALF OF THE BOARD OF DIRECTORS
Ralph Rushton
CEO and Director |
