from The Daily Bell:
Golden Arrow Resources (TSXV: GRG; US-OTC: GARWF) is best known for its Chinchillas silver-lead-zinc project in Argentina’s Jujuy province, but the prospect generator also has properties in the country’s San Juan and La Rioja provinces, and is now extending its reach into Catamarca province in an option deal to acquire a silver and base metals project called Antofalla.
“It’s one of the ones that we’ve had our eye on for a couple of years,” says Brian McEwen, the company’s vice president of exploration and development. “You can see this large area of alteration at Antofalla and we started looking at it on Google Earth two or three years ago.“
“When we signed our due diligence deal and did some chip channel sampling on outcrops we came back with some spectacular results, like 14.9 metres of 271 grams silver and 1% lead.”
Under the option deal with the private vendor—an Argentine lawyer—Golden Arrow will pay $1.56 million in staged payments over a five-year period to earn 100% of the project. The vendor retains a 1% net smelter return royalty (NSR), but Golden Arrow has the option to buy it back for $1.5 million.
“It’s an incredible deal and it’s back-ended, so we’re not putting too much upfront,” McEwen says, noting that the company’s management team and the seller had come up with the structure of the deal a year and a half ago.
“It’s fair to say that if we were going to go in and try to negotiate a deal today, it would be difficult to strike one this attractive in today’s market, given the positive outlook in Argentina [following the election of President Macri in late 2015] and the uptick in the market and metal prices in general.”
Geologists have known about Antofalla for many years and it has been looked at by other companies, McEwen says.
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