The company has conditionally agreed to acquire all of Columbus Silver’s outstanding common stock for C$0.20 ($0.20) per share.
Santa Fe president and CEO Pierce Carson said this transaction potentially will more than double the company’s controlled silver and gold resources available for processing at its fully-permitted and operating flotation mill near Lordsburg in New Mexico, US.
"Furthermore, Columbus Silver’s portfolio of seven high quality US silver-gold properties in New Mexico, Arizona, Nevada and Utah provides excellent upside exploration potential," Carson said.
According to Santa Fe, the MoU contemplates a business combination by way of a court approved plan of arrangement.
The proposed deal is subject to the final approval of the boards of directors of both companies and regulatory and court approvals.
Santa Fe is a mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral properties.
