Source: The Gold Report 04/13/2017
Stars aligned for Golden Arrow when Chinchillas was ready to move to production and the company only had to look 18 miles down the road to Silver Standard’s Pirquitas mine and its established production facility.
On March 31, Golden Arrow Resources Corp. (GRG:TSX.V; GAC:FSE; GARWF:OTCQB) and Silver Standard Resources Inc. (SSO:TSX; SSRI:NASDAQ) announced they would be forming a 75%-25% joint venture that will combine the Chinchillas project and the Pirquitas mine. In the announcement, Golden Arrow highlighted that the agreement provides:
Golden Arrow an opportunity to fast-track development of the Chinchillas property, in a capital efficient manner, through use of the existing production facilities at the Pirquitas Mine and establishment of common infrastructure.
Near-term production from Chinchillas based on construction beginning in the third quarter of 2017, followed by ore delivery to the mill in the second half of 2018.
Option exercise payment by Silver Standard to Golden Arrow of 25% of Pirquitas mine earnings less certain expenditures incurred since October 1, 2015 until closing, currently estimated at approximately US$15 million, payable on closing, which is expected on or before May 30, 2017.
Golden Arrow Executive Chairman, President and CEO Joseph Grosso stated, “This is a landmark achievement for our Company. As Golden Arrow transitions an exploration discovery into a mining operation, our shareholders stand to benefit from this profile and strengthened financial position.” In an April 12 webcast, Grosso describes the circumstances leading to Golden Arrow and Silver Standard joining forces.
In Silver Standard’s March 31 announcement, Paul Benson, president and CEO of Silver Standard, said, “Forming the joint venture is an excellent result due to the outstanding cooperation by our partner Golden …read more