M&A

Mithril changes tack with high grade Mexican gold-silver play

Deal features successful team and ground in Copalquin Mining District, Durango State

 Mithril shareholders will be hoping for better days ahead in Mexico

Mithril shareholders will be hoping for better days ahead in Mexico

Mithril is to acquire private company Sun Minerals, with owners of Sun including Leitch to end up with 40% of the ASX-listed junior and management.

The 40% stake also takes into account a A$4.9 million rights issue that will price new shares at 1c each.

Sun has an option to acquire ground making up the high-grade Copalquin tenements for a staged consideration including expenditure of US$8 million and a cash payment of $10 million (or issue of shares) by August 2023.

The Copalquin prospect is said to cover the entire Copalquin Mining District within the gold-silver trend of the Sierra Madre Occidental mountain range in Durango State, western Mexico.

According to Sun, the gold silver trend is host to numerous gold and silver deposits, with multiple producing mines including; Coeur Mining's Palmarejo, Agnico Eagles' Pinos Altos, Goldcorp's El Suazal Mine (now depleted), First Majestic Silver's San Dimas mine, Fresnillo's San Julian and La Cienega mines and the now closed Ocampo mine.

Sun was founded in 2017 and is said to have has thus far spent A$2.5 million on exploration.

Other involved in Sun include John Skeet, Hall Stewart and Garry Thomas.

Leitch, who will be appointed Mithril's executive chairman, was the non-executive director and major shareholder of Mexico focused Bolnisi until its $1.3 billion take-over by Coeur in 2007.

A 4500m diamond drilling program at Copalquin is planned upon deal completion.

Mithril listed in late 2002, with outgoing MD David Hutton having been with the company since early this decade.

Shares in Mithril more than doubled in early trade to 1.8c, capitalising the company at $9 million.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.