Defiance Silver Corp. Finalizes Long-Term Access for Tepal Gold-Copper Project in Mexico
- Defiance Silver Corp. finalizes a six-year access agreement for the Tepal Gold-Copper Project in Michoacán, Mexico.
- The agreement enables essential exploration, drilling, and engineering studies necessary for project development and permits.
- Defiance aims for sustainable growth and capital efficiency while advancing both the Tepal and Zacatecas projects.
Defiance Silver Corp. Secures Long-Term Access for Tepal Gold-Copper Project
Defiance Silver Corp. (TSXV: DEF) announces a significant milestone with the finalization of a six-year long-term access agreement for its Tepal Gold-Copper Project, located in Michoacán, Mexico. This agreement, which is crucial for advancing the project, allows the company to conduct essential surface exploration, drilling, and engineering studies necessary for project development and the submission of vital permit applications. This move underscores Defiance's commitment to enhancing its operational capabilities in a competitive mining sector while laying the groundwork for future growth.
Under the terms of the agreement, Defiance will make annual cash payments indexed to the inflation rate in Mexico and will issue common shares valued at US$40,000 to the surface rights holder. This arrangement not only provides the company with the necessary permissions to proceed with exploration activities but also establishes a collaborative relationship with local stakeholders. Over the six-year period, the total number of shares issued will not exceed 1,400,000, with the company planning to issue 201,452 common shares for the upcoming year at a deemed price of C$0.27 per share, pending approval from the TSX Venture Exchange. This strategic approach reflects Defiance's dedication to resource growth while being mindful of its financial commitments.
The Tepal agreement comes as Defiance continues to advance its other significant initiative, the Zacatecas project, situated in the historic Zacatecas Silver District. With a management team comprised of seasoned mine developers, Defiance Silver is focused on capital-efficient exploration that aims to uncover new mineral discoveries and enhance existing resources. CEO Chris Wright expresses optimism regarding this recent development, emphasizing that the agreement is a pivotal step toward advancing the Tepal project. The company is poised to leverage this partnership to gather essential data and insights that will inform future project advancements, ensuring a robust pathway toward sustainable growth.
In related news, Defiance's focus on advancing both the Tepal and Zacatecas projects signals its strategic intent to establish a strong foothold within the Mexican mining sector. The company's approach is characterized by an emphasis on capital efficiency and sustainable operational practices, positioning it favorably amid the evolving dynamics of the mining industry.
Overall, the finalized access agreement not only facilitates immediate exploration activities but also reflects a long-term vision for Defiance Silver Corp., as it seeks to maximize its potential in both gold and silver mining within Mexico.