Defiance Silver has announced its intention to acquire Green Earth Metals (GEMS), a privately-held company with certain mining interests in Mexico.
In this connection, the parties have entered into a non-binding letter of intent (LOI).
Under the terms of the proposed acquisition, Defiance Silver will assume full ownership of GEMS, a British Columbia-based firm founded by geoscientist Richard Osmond.
GEMS holds rights to three copper-gold-silver-molybdenum projects located within Mexico’s Sonoran Desert porphyry copper belt. These projects encompass a total area of 6,795.22ha and are situated near Alamos Gold’s Mulatos Mine, in a region known for substantial copper deposits.
For Defiance Silver, the acquisition is expected to provide exploration opportunities. The GEMS properties, which include the Victoria, Espiritu, and Los Ocotes projects, are located in an area rich with mineral deposits operated by global mining companies.
Defiance Silver chairman and CEO Chris Wright said: “This acquisition aligns with Defiance Silver’s core strategy of acquiring and advancing top tier mining projects. Our goal is to develop assets that will play a leading role in the future of gold, silver, and copper mining in Mexico.
“The Green Earth Metals team consists of seasoned mine financiers and global mineral explorers, and we are pleased to welcome them as shareholders. Securing this portfolio of drill-ready copper-gold-silver projects in Sonora—one of the world’s premier copper-gold mining jurisdictions—represents a major step forward for Defiance.”
Existing drill permits allow Defiance Silver to initiate a comprehensive exploration campaign, particularly at the Victoria project.
The Victoria Project consists of two non-contiguous mineral claims covering 1,795.22ha within the productive Sonoran Desert porphyry copper belt. This area is noted for hosting notable copper-gold deposits.
Additionally, the Espiritu Project spans 2,711ha near Sahuaripa and shows characteristics of a hydrothermal system but remains underexplored. The Los Ocotes Project covers 2,283ha in the same regional trend as Victoria and Espiritu.
For the acquisition, Defiance Silver proposes issuing common shares to GEMS shareholders based on an exchange ratio of 1 Defiance Silver share for every 4.52 GEMS shares. This would result in a total purchase price of C$1.25m.
Furthermore, Defiance Silver will provide a C$150,000 unsecured convertible debenture to GEMS.
Completion of this transaction is contingent upon several conditions. These include successful due diligence by Defiance and execution of definitive agreements between Defiance Silver, GEMS, and its shareholders.
At least 90% of GEMS shareholders must agree to exchange their shares for Defiance Silver shares. Obtaining necessary regulatory approvals from bodies such as the TSX Venture Exchange is also required.
Defiance Silver anticipates finalising this transaction roughly 75 days following the execution of the definitive agreement.
